MANILA, Philippines — Millions of households and businesses served by Manila Electric Co. (Meralco) will see higher electricity bills starting in September 2026, following regulatory approval for the utility to recover over P4 billion in costs.
The Energy Regulatory Commission (ERC) has authorized Meralco to pass on expenses totaling P3.67 billion and $6.38 million to consumers, linked to payments made to Excellent Energy Resources Inc. (EERI), a subsidiary jointly owned by Meralco PowerGen, San Miguel Global Power, and Aboitiz Power.
"The Commission recognizes EERI's commercial operations date and authorizes the collection of the cost recovery for 12 months, translating to a rate hike of P0.1099 per kilowatt hour," the ERC stated in its decision.
Despite EERI not yet holding a full certificate of compliance, the regulator noted that the company had obtained provisional authority to operate its three units, justifying the cost recovery.
However, in light of current economic pressures, the ERC adjusted the timeline, specifying that the recovery period should not begin earlier than September 2026 billing cycles.
This decision comes amid broader energy market challenges, including elevated fuel prices since conflict erupted in the Middle East in February. Energy officials have previously warned that spot power prices could reach up to P9 per kWh, though regulatory interventions have helped temper potential spikes.
Department of Energy Secretary Sharon Garin commented on the situation, reassuring the public that power supply remains stable, with only a small fraction of diesel consumption affecting electricity generation.
The approved rate increase will impact Meralco's vast customer base across Metro Manila and surrounding provinces, adding to the financial strain already felt by many Filipinos grappling with inflation and rising living costs.