Higher transmission charges will jack up Manila Electric Company’s (Meralco) power rates in February 2026, abruptly reversing two straight months of declines and hitting consumers with another increase.
During a briefing on Tuesday, Meralco vice president and head of corporate communications Joe Zaldarriaga announced that rates will climb by P0.2226 per kilowatt-hour (kWh), pushing overall electricity prices to P13.1734 per kWh.
For households consuming 200 kWh a month, this translates to an added burden of roughly P45 on their electricity bills.
Zaldarriaga attributed the increase primarily to higher transmission charges, which surged by P0.1975 per kWh as a result of rising ancillary service costs from the reserve market. This was compounded by a P0.0779 per kWh increase in the universal charge for missionary electrification (UCME), a levy used to subsidize electricity in off-grid and remote areas.
While the spike in transmission charges was partially tempered by a decline in generation charges, the relief was limited. Generation costs fell by P0.1073 per kWh to P7.639 per kWh, largely due to lower rates from independent power producers.
However, any further reduction was blocked by elevated prices in the wholesale electricity spot market, driven by tighter supply conditions in the Luzon grid. Charges from power supply agreements also rose by P0.0483 per kWh as power plants operated by Excellent Energy Resources Inc. and South Premier Power Corporation move closer to scheduled maintenance shutdowns.
Zaldarriaga said the shutdowns are standard procedures aimed at preparing the system for higher electricity demand during the dry season.
Lifeline subsidy
Despite the looming rate hike, Meralco said it will continue extending discounts under the government’s lifeline subsidy program, which targets low-income consumers using up to 50 kWh per month—most of whom are beneficiaries of the Pantawid Pamilyang Pilipino Program (4Ps).
Households consuming 50 kWh or less will continue to receive a full 100 percent discount. Those using 51–70 kWh will be granted a 35 percent discount, while consumers in the 71–100 kWh range will get a 20 percent reduction.
Under a directive from the Energy Regulatory Commission (ERC), a uniform national lifeline subsidy rate of P0.01 per kWh is set to take effect in March 2026, with the revised discount structure applying the following month.
“We welcome this directive from the ERC which we hope will provide additional relief to our qualified customers,” Zaldarriaga said.
MERALCO PHOTO