Manila Electric Co. (Meralco) said power transmission charges are likely to rise but the final cost of generation has not yet been decided for the June billing period.
The distribution utility company said on Thursday it is still uncertain whether electricity rates for its customers in Metro Manila and nearby provinces will increase or drop.
How the rate adjustment will go this June remains unclear as pricing indicators that contribute to the overall power rates are mixed, the company said.
While final computations are still pending, initial data suggests a potential tug-of-war between various cost components, the company said in a statement.
Meralco spokesman Joe Zaldarriaga said the company is awaiting final billings from suppliers, which are crucial in determining the definitive power rates for the June billing period.
“Initial information shows a possibility of an increase in the transmission charge,” the company said.
The transmission charge covers the cost of delivering electricity from power plants to Meralco’s distribution network.
This potential increase is attributed to an anticipated rise in reserve market prices for the May supply month compared with the previous month, based on publicly available data.
However, the company is also positive regarding the generation charge, which constitutes the largest portion of an electricity bill.
In terms of the generation charge, we hope it remains flattish and that there will be no significant movement for the June billing month following the significant decrease last May,” Meralco said.
Prices at the power reserve market affect the ancillary service charges of the transmission grid operator, which in this case is the National Grid Corporation of the Philippine. This is then passed on to consumers.
The ongoing implementation of Meralco’s P19.96 billion refund will also affect the final power rate for June, which Meralco said “will help mitigate possible increases in power bill components.”
Meralco is scheduled to announce its official June 2025 power rates next week.
In May, consumers benefited from a notable reduction of P0.7499 per kilowatt-hour (kWh) in their monthly bill.
