From BigGo Finance · BigGo Finance · · 1m 10s
Philippine Regulator Approves Meralco Rate Increase
Philippine regulator approves Meralco's first rate reset in 15 years, cutting requested revenue by 36%.
In brief
Philippine regulator approves Meralco's first rate reset in 15 years, cutting requested revenue by 36%. Philippine Energy Regulatory Commission approved Meralco's distribution rate increase to P1.48 per kWh for 2026-2030, reducing revenue requirement by 36% from P532 billion to P342 billion. Originally reported by…
Regulator approves rate reset
Philippine Energy Regulatory Commission approved Manila Electric Co.'s first distribution rate reset in 15 years.
New rate set at P1.48 per kWh
The reset sets an average charge of P1.48 per kilowatt-hour for July 2026 through June 2030.
Rate increase from current P1.35
The rate is 9.6 percent higher than the current P1.35 per kWh but far below Meralco's proposed P2.34 per kWh.
Revenue requirement cut by 36%
ERC authorized a total revenue requirement of about P342 billion over four years, cutting Meralco's request by 36 percent or P190 billion.
ERC chair explains cuts
ERC Chair Francis Saturnino Juan said the commission trimmed unjustified capital projects, disallowed excessive operating costs, and used a lower return on capital.
Rate covers only distribution
The reset covers only distribution charges, not generation or transmission costs for Meralco's 8 million customers.
In short
Philippine Energy Regulatory Commission approved Meralco's distribution rate increase to P1.48 per kWh for 2026-2030, reducing revenue requirement by 36% from P532 billion to P342 billion.
