MANILA, Philippines — Meralco is raising its electricity rate by 34 centavos per kilowatt-hour in July, pushing the typical household bill higher for the second consecutive month.
The utility giant announced Friday, July 10, 2026, that the adjustment brings the average residential rate to roughly P12.47 per kWh, up from P12.13 in June. For a household consuming 200 kWh, that translates to an additional P68 on the monthly bill — before taxes and other charges.
Drivers behind the hike
Meralco attributed the increase to three main factors: higher generation costs, increased taxes, and the continuing impact of peso depreciation against the US dollar.
The generation charge — the single largest component of the electricity bill — rose mainly because of tightened supply conditions in the Wholesale Electricity Spot Market and higher fuel prices tied to Middle East supply disruptions. These upstream costs are passed through to consumers under the current regulatory framework.
What households should expect
The increase is modest in absolute terms, but it adds to a bruising year for electricity consumers. Meralco already raised rates by 15 centavos in June, following a series of intermittent hikes and cuts throughout 2025 and early 2026. The July adjustment means that, over the past 12 months, the prevailing rate has fluctuated by more than P1 per kWh depending on the month.
A typical family running two air conditioners, a refrigerator, and LED lighting will notice the difference. So will small MSMEs that rely on steady power for daily operations.
More increases possible by Q3
Regulators indicated that Meralco’s rate adjustment for the next quarter will be released before September, leaving open the possibility of another upward revision if generation and transmission costs remain elevated.
In a separate development earlier this week, the Energy Regulatory Commission also started reviewing the distribution tariff reset that Meralco filed, seeking a 73 percent increase in its allowable distribution margin. If approved, that could translate into another layer of cost increases over a longer horizon.
What consumers can do
Meralco continues to push its appliance replacement and energy-efficiency programs. Using inverter-type air conditioners and LED lighting, shifting heavy-load activities to off-peak hours, and unplugging idle devices remain the quickest ways to blunt the cumulative effect of monthly rate volatility.
The July billing cycle covers consumption from June 16 to July 15. Bills will be printed and delivered through Meralco’s usual channels starting mid-July.
