Meralco distribution rate hike approved for the first time…

Meralco distribution rate hike approved for the first time in 15 years — from 1.35 to 1.48 pesos per kWh, implementation date undecided

📌 On Saturday, October 10, the Energy Regulatory Commission (ERC) announced its decision to reset Meralco's distribution rates for the first time in 15 years, raising the average distribution rate from 1.35 pesos to 1.48 pesos per kWh, an increase of about 13 centavos (9.6%). While around 8 million Meralco customers could be affected, it has not yet been announced when the changes will take effect or how much household bills will increase.

■ What changes
· The ERC set Meralco's distribution revenue at about 342 billion pesos from July 2026 to June 2030, which is 36% lower than the 532 billion pesos requested by Meralco.
· Meralco applied for 2.34 pesos per kWh, but the ERC only approved 1.48 pesos.
· This decision applies only to the "distribution charge" for carrying electricity through power lines and substations. Generation and transmission charges, taxes, and other items are not included.
· This is the first time since 2011 that Meralco's distribution revenues and rates have undergone a complete review.
· ERC Chairperson Francis Saturnino Juan explained that capital expenditures lacking sufficient justification, excessive operating and bad debt costs were cut, and a lower return on capital than what Meralco proposed was applied.

■ Tips for Residents and Travelers
· Check if Meralco is printed on your electricity bill. Areas served by other distribution companies are not subject to this decision.
· You will need to wait for further announcements from Meralco and the ERC regarding the implementation date and the specific increase for households. Monthly bills fluctuate separately based on generation charges and other factors, so do not calculate potential increases based solely on this rate hike.

■ Sources
Inquirer (10/11), Rappler (10/10)