Meralco power rates drop by P0.04/kWh in August 2026

MANILA, Philippines – Meralco electricity rates will slightly decrease in August, with the overall rate for a typical household dropping by P0.0428 per kilowatt-hour (kWh) from the previous month.

The adjustment brings Meralco’s overall rate to P14.7833 per kWh in August from P14.8261 per kWh in July, according to the power distributor.

For residential customers consuming 200 kWh, the rate reduction translates to an estimated P9 decrease in their total electricity bill.

Households using 300 kWh, 400 kWh, and 500 kWh may see estimated bill reductions of P13, P17, and P21, respectively.

Meralco said the main reason for the lower August rate is a P9.5-billion refund authorized by the Energy Regulatory Commission (ERC).

The refund is equivalent to P0.5861 per kWh for residential customers and will be implemented over a six-month period beginning this August.

The refund covers the difference between Meralco’s Actual Weighted Average Tariff (AWAT) and its approved distribution tariff for the period from January to December 2025.

Customers will see the refund reflected as “AWAT Refund/(Collect) 2” under the distribution portion of their electricity bills.

Meralco Vice President and Head of Corporate Communications Joe R. Zaldarriaga said the refund resulted from delays in the rate reset process for distribution utilities and would provide some relief to customers.

However, Meralco said the reduction would have been larger without increases in other components of the electricity bill, particularly transmission charges.

Charges from the National Grid Corporation of the Philippines (NGCP) increased by P0.3024 per kWh due to higher ancillary service charges from the Reserve Market.

Taxes and other charges also posted a net increase of P0.2113 per kWh, partly due to a higher Feed-in Tariff Allowance (FIT-All) and increased taxes linked to the greater use of liquefied natural gas and liquid condensate.

Meanwhile, the generation charge rose slightly by P0.0296 per kWh, mainly due to higher costs from First Gas/Prime CoreGen, which were partly offset by lower charges from the Wholesale Electricity Spot Market (WESM) and Meralco’s power supply agreements.

— The Summit Express