Meralco announces further decrease in power rates this June

Meralco announces further decrease in power rates this June

MANILA, Philippines — Manila Electric Company (Meralco) announced another downward adjustment of power rates, as the overall rate for a typical household decreased by P0.0216 per kWh, from last month’s P8.7468 per kWh to P8.7252 per kWh this June.

This is equivalent to a reduction of around P4 in the total bill of residential customers consuming 200 kWh.

With three straight months of generation rate reduction and a total rate decrease of more than P1 per kWh since the start of the year, this month’s total rate is also significantly lower than that of June 2019, which was P10.0918 per kWh.

This month’s total rate is also the lowest since February 2018.

Claiming force majeure

From P4.3848 per kWh last May, the generation charge decreased by P0.0435 per kWh to P4.3413 per kWh this June.

Because of the very significant reduction in power demand in its service area during the Enhanced Community Quarantine (ECQ) and Modified ECQ period, Meralco invoked the force majeure provision in its Power Supply Agreements (PSAs) for the duration of the lockdown, reducing fixed charges for generation capacity that would have been charged by suppliers.

This June, the force majeure claim totaled P614 million, equivalent to customer savings of P0.2208 per kWh, representing a reduction in fixed costs from its baseload supply contracts and avoided charges from the temporary suspension of the mid-merit supply contracts recently approved by the Energy Regulatory Commission (ERC).

Without these claims, the generation charge and the total rate would have increased by 18 centavos and 24 centavos, respectively, from last month’s rate. For the past three months, the savings due to force majeure claims totaled around P1.6 billion.

PSA charges decreased by P0.0613 per kWh mainly due to Meralco's force majeure claim. The cost of power from Independent Power Producers (IPPs) also decreased by P0.2334 per kWh due to higher average plant dispatch. PSAs and IPPs accounted for 50.4% and 47.1% of its total supply, respectively.

Meanwhile, charges from the Wholesale Electricity Spot Market (WESM) increased by P0.3132 per kWh due to tighter supply conditions in the Luzon grid mainly due to higher incidents of plant outages and a slight increase in demand. The share of WESM to Meralco’s supply needs was only at 2.5%.

Movements in other charges

Other pass-through charges registered an increase of P0.0219 per kWh. This was mainly due to the resumption of the P0.0495 per kWh Feed-In-Tariff Allowance (FIT-All). The ERC suspended the collection of FIT-All for April and May billing months in consideration of the ECQ.

ERC also suspended the collection of Universal Charge-Environmental Charge amounting to P0.0025 per kWh beginning this June, until further notice.

The company's distribution, supply, and metering charges, meanwhile, have remained unchanged for 59 months, after these registered reductions in July 2015.

Meralco reiterated that it does not earn from the pass-through charges, such as the generation and transmission charges. Payment for the generation charge goes to the power suppliers, while payment for the transmission charge goes to the NGCP.

Taxes and other public policy charges like the Universal Charges and the FIT-All are remitted to the government.

Doors open during GCQ

Customers may visit their nearest Meralco Business Center, which will continue to open its doors during the ongoing General Community Quarantine (GCQ) and accept service applications, payments, and other transactions.

Strict safety measures continue to be implemented, like the “No Mask, No Entry” rule, social distancing and temperature check.

Visitors are rest assured that frontliners have passed the rapid COVID-19 testing authorized by the Pasig City Health Office. There are also acrylic barriers set up in the Meralco branches to protect both the customer and the frontliner.

For maximum safety and convenience, the company encourages customers to use Meralco Online to transact from the safety of their homes. 

Multiple options for transactions have also been offered by the distribution utility, including the Meralco Mobile App via, Meralco Online via, and the Meralco authorized payment channels at

For more information and concerns, customers may visit, its social media accounts, Twitter @Meralco and Facebook at, or may call the Meralco Hotline at 16211.