Electricity rates are set to go higher as the Energy Regulatory Commission (ERC) approved Meralco’s rate hike after more than ten years. The regulator cut Meralco’s request but still allowed an increase in distribution charges starting July 2026.
ERC set Meralco’s total revenue requirement at ₱342 billion for four years, much lower than the ₱532 billion the company asked for. This translates to an average distribution rate of ₱1.48 per kilowatt-hour, up from the current ₱1.35. Meralco had applied for ₱2.34 per kilowatt-hour.
The approved reset covers July 2026 to June 2030. ERC trimmed capital projects, disallowed excessive operating costs, removed contingencies, and applied a lower return on capital to protect consumers.
Distribution charges cover poles, wires, and substations. They are only one part of your electricity bill, which also includes generation, transmission, and taxes. Even with ERC’s cut, households will still see higher bills once the new rates take effect.
ERC said the decision balances Meralco’s need to recover costs with consumer protection. The regulator explained that the lower approved revenue ensures efficiency while keeping rates manageable.
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The new rates cover July 2026 to June 2030. Consumers should expect slightly higher bills, though the increase is smaller than what Meralco originally asked for.
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