The Manila Electric Company (Meralco) has implemented a P0.6427 per kilowatt-hour increase in electricity rates for March 2026. This results in an approximately P129 rise in monthly bills for residential customers using 200 kWh on average. The hike is mainly driven by higher transmission charges from a surge in ancillary services by the National Grid Corp. of the Philippines (NGCP).
On Tuesday, March 10, the Manila Electric Company (Meralco) implemented an upward adjustment of P0.6427 per kilowatt-hour in electricity rates for March 2026, bringing the overall rate for a typical household to P13.8161 per kWh. The power concessionaire stated that the primary driver is a P0.2880 per kWh increase in transmission charges, stemming from a 70% surge in ancillary service charges incurred by the National Grid Corp. of the Philippines (NGCP) from the Reserve Market. These now account for nearly half of the total transmission cost for the current billing cycle.
Additionally, the generation charge rose by P0.2209 per kWh to P7.8607 per kWh. Meralco attributed this to fixed charges from the second extension of the Power Purchase Agreement with First Gas-Sta. Rita, adding roughly P0.38 per kWh. This was partly offset by a P1.0952 per kWh reduction in charges from the Wholesale Electricity Spot Market due to improved supply conditions in the Luzon grid. The generation charge also includes a P0.2817 per kWh contract price adjustment from providers such as ACEN Corp. and South Premiere Power Corp.
Other contributing factors include a net increase of P0.1338 per kWh in taxes and other charges. This month's billing implements the new uniform national lifeline subsidy rate of P0.01 per kWh, following a directive from the Energy Regulatory Commission. Meralco's own distribution charge has remained unchanged since August 2022.
Amid the ongoing Middle East conflict and the approaching dry season, Meralco urged consumers to conserve energy. It noted that demand historically rises by 20% to 33% during the dry season due to increased air conditioning use. “With higher temperatures forecast to drive increased consumption, households and businesses alike are encouraged to take proactive steps in managing their energy use,” Meralco said.
