MANILA, Philippines — Defying expectations of a massive price hike, Manila Electric Co. (Meralco) announced on Wednesday, May 13, 2026, a marginal reduction in electricity rates for the May billing cycle. The adjustment comes as a surprise to many, given the soaring global fuel prices fueled by the ongoing Middle East conflict.
The overall rate for a typical household will decrease by ₱0.0151 per kilowatt-hour (kWh), bringing the cost down to ₱14.3345 per kWh from April’s ₱14.3496.
While the reduction is slight, it provides a small “sigh of relief” after three consecutive months of increases.
| Monthly Consumption | Estimated Reduction |
| 200 kWh | ₱3.02 |
| 300 kWh | ₱4.53 |
| 400 kWh | ₱6.04 |
The Energy Regulatory Commission (ERC) spearheaded several “proactive efforts” to shield consumers from a potentially massive spike in generation costs. These mitigating measures include:
- Accelerated Refund: The ERC authorized Meralco to shorten the refund period for ₱14.2 billion in over-recoveries. The monthly refund for residential customers was effectively doubled to ₱0.4278 per kWh.
- VAT Exemption on Natural Gas: Consumers are beginning to see the benefits of the Philippine Natural Gas Industry Development Act (RA 12120), which provides value-added tax exemptions for power generated using indigenous natural gas.
- Lower Transmission Charges: The National Grid Corp. of the Philippines (NGCP) reduced its transmission wheeling rates and ancillary services (AS) charges for the period.
- Tax Suspensions: The collection of the ₱0.0371 per kWh Green Energy Auction Allowance has been suspended for May and June.
Despite the lower final bill, the cost of producing electricity actually surged this month.
- Generation Charge: Rose to ₱8.7942 per kWh (up from ₱8.3864 in April).
- WESM Volatility: Charges from the Wholesale Electricity Spot Market (WESM) spiked by a staggering ₱7.7239 per kWh, driven by high demand during the summer peak and the depreciation of the Philippine Peso.
- Mitigation: To prevent these costs from hitting consumers directly, the ERC allowed Meralco to apply line rental caps under its power supply agreements (PSAs), forcing suppliers to bear a significant portion of the WESM price surge.
Meralco Vice President Joe Zaldarriaga reminded customers that while the per-unit price is lower, total bills may still rise due to the “summer effect.”
“While our customers stand to benefit from relatively stable rates this May, we would like to advise our customers that the bills that they will receive may still go up depending on their actual consumption, which usually increases during the summer months.” — Joe Zaldarriaga
The heavy use of air conditioners and electric fans during the sweltering dry season typically results in higher total energy usage, which can easily offset the ₱0.0151 per kWh reduction.