MANILA, Philippines – Power distributor Manila Electric Co. (Meralco) expects a reduction in electricity rates for the January billing cycle, driven by lower electricity prices at the Wholesale Electricity Spot Market (WESM).

According to Joe Zaldarriaga, Meralco’s vice president and head of Corporate Communications, the company anticipates a decrease in the generation charge, which typically accounts for over 50% of the average power bill.

Zaldarriaga noted that the expected reduction comes as a result of an improved supply situation in the Luzon grid, where both average peak demand and average capacity on outage fell in December. This contributed to a significant 23% drop in WESM prices in Luzon, bringing the regional average price to P3.26 per kilowatt-hour (kWh).

The lower prices were not limited to Luzon.

In the Visayas, supply increased by 3.8%, while demand fell by 1.4%, leading to a 19.8% reduction in regional average prices, now at P3.87 per kWh.

Similarly, Mindanao saw a 0.6% rise in supply and a 2% drop in demand, resulting in a 20% decrease in average prices, which now stand at P3.88 per kWh.

“Indications show a possible decrease in the generation charge in our customers’ bills this January,” Zaldarriaga said.

“We expect the lower generation charge to lead to an overall rate reduction in this month’s electricity rates.” Zaldarriaga added.

The potential decline in rates would mark the first reduction in 2025, following two months of price hikes. In December, Meralco’s overall rate increased by P0.1048 per kWh to P11.9617 per kWh, primarily due to higher generation costs from the WESM and power supply agreements.

As the main power distributor for Metro Manila and surrounding areas, Meralco serves approximately eight million customers across 39 cities and 72 municipalities.

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