News Updates

Power rates down this SeptemberDate Published: September 10, 2014

Generation charge registers lowest level for the year

Electricity rates will go down by around 58 centavos per kilowatthour (kWh) in September for a typical household consuming 200 kWh. This is equivalent to savings of around P116 in the bill for September. Reasons for the downward adjustment are as follows: (i) lower generation charge (ii) lower transmission charge, and (iii) decrease in other charges.

Improved availability of power plants drive generation charge down

Generation charge for September went down to P5.19 per kWh, its lowest level in 2014 to-date and a 44-centavo per kWh reduction from August’s P5.63. The reduction was primarily driven by the improved availability of generation plants, as less forced outages were registered by power plants during the August supply month. In contrast to July, when the Luzon Grid experienced instances of generation deficiency, no Yellow or Red Alerts were declared in August.

The improved availability of power plants led to higher utilization levels, with corresponding P0.27 and P0.06 per kWh decreases in the average rates of suppliers with Power Supply Agreements (PSAs) with Meralco and of Independent Power Producers (IPPs), respectively.

The improved reliability of power plants also led to lower prices in the Wholesale Electricity Spot Market (WESM). While the Secondary Price Cap was triggered in 56 trading intervals in July, the Cap was triggered for only 18 intervals in August to mitigate price spikes in the WESM. Charges from the WESM, excluding adjustments from prior periods and line rentals, went down by P5.34 per kWh.

In terms of share to Meralco’s total power requirements for the August supply month, PSAs, IPPs, and WESM accounted for 52, 47, and 1 percent, respectively.

Reductions in other bill components

Contributing also to the overall downward adjustment in the bills to households is the P0.04 per kWh decrease in transmission charge. This was mainly due to lower ancillary charges. There was also a cumulative decrease of P0.02 per kWh in subsidies and the system loss charge. Taxes likewise decreased by P0.08 per kWh.

Meralco reiterated that it does not earn from the pass-through charges, such as the generation and transmission charges. Payment for the generation charge goes to the power suppliers such as the plants selling to Meralco through the WESM and under the PSAs, as well as the IPPs. Payment for the transmission charge, meanwhile, goes to the National Grid Corporation of the Philippines (NGCP). Of the total bill, only the distribution, supply, and metering charges accrue to Meralco.

Meralco’s tree trimming service

Meralco also said that since it is still the typhoon season, customers may report tree branches that are near or actually touching power lines as these may trigger power outages or cause unnecessary accidents. Upon notifying Meralco, trained tree trimmers will be sent to do the job. To request for Meralco’s tree trimming service, customers may contact the Meralco Call Center at 16211 or post their request over Meralco’s Twitter account (@meralco) and Facebook page (

For other tips, customers may visit the Meralco website at

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Meralco supports 2014 Integrity SummitDate Published: September 09, 2014

Meralco is among the front-runners in this year’s Integrity Summit to be held on September 19, 2014.

Integrity Summit is a campaign spearheaded by Integrity Initiative, Incorporated that aims to promote common ethical standards in society.

Meralco has been a signatory of Integrity Initiative since 2011 and as of September 2014, Meralco has been part of the 12 companies that are validated as “advanced” in terms of implementing ethical standards.

The company has been putting high importance on integrity, through its Corporate Governance Office, to ensure that fairness, accountability and transparency are upheld in order to protect the interest of all stakeholders. Through the Integrity Summit, Meralco would like to serve as a lead in promoting and practicing integrity.

“As a company, we have ensured that we expand our involvement in spreading the culture of integrity among corporates in the country through participating various initiatives and fora to enable other corporates as well to observe best practices,” said Attorney William S. Pamintuan, First Vice President and Head of Legal.

Integrity Summit 2014 is just among the series of events lined up for this year. With the theme “Uniting for Integrity,” the summit aims to increase awareness on the need for stronger ethical practices among all sectors and encourage participants to embrace a culture of integrity.

Representatives from the business groups, government agencies, the youth sector and the church are expected to attend the forum wherein the companies that have mainstreamed integrity practices and are now reaping the benefits of committing to high integrity standards will be recognized.

UPHOLDING INTEGRITY IN BUSINESS. (L-R) Rock Ed Philippines Founder Gang Badoy; Meralco First Vice President Atty. William Pamintuan, Integrity Initiative and Makati Business Club Chairman Ramon del Rosario Jr.; and DLSU Culture and Arts Office Coordinator Sheryl Maala.

Electricity rates up by 31 centavos per kWh for AugustDate Published: August 15, 2014

WESM prior period billing adjustments and power plant outages aggravated
by Typhoon 'Glenda' drive generation charge up

Following a cumulative reduction of P0.86 per kilowatthour (kWh) since last May, a typical residential customer with a 200-kWh consumption can expect a 31-centavo per kWh increase in his electric bill for August. This means an increase of around P62 for this month.

An increase in generation charge and higher universal charge, lifeline subsidy and taxes drove overall upward adjustment.

There was no change in Meralco's distribution charge, while Transmission charge showed a slight reduction.

WESM prior period adjustments and power outages increased the cost of power

Generation charge for August 2014 went up by 23 centavos per kWh, from P5.41 per kWh to P5.64 per kWh. Largely contributing to this were the WESM billing adjustments from prior periods which accounted for around 17 centavos per kWh and an increase of 6 centavos per kWh in the average cost of contracted power supply sourced from Power Supply Agreements (PSAs).

There was a shortfall in power supply due to forced and scheduled outages of various plants, aggravated by the impact of Typhoon 'Glenda'. The damages caused by the typhoon to some transmission and generating facilities limited the output of a number of power plants located in Southern Luzon. This led to the lower dispatch of the affected plants. The presence of the secondary WESM price caps helped moderate the increase in WESM charges.

For the July supply month, a number of power plant units pushed through with their scheduled outages, including Pagbilao 1, and Ilijan 1 & 2. Further depleting supply of power were 20 new forced outages of several power plant units of various durations during the month (due to Typhoon 'Glenda' or otherwise) such as Sta. Rita Units 10, 20 & 30, Calaca 1 & 2, GN Power 1 & 2, Sual 1 & 2, Ilijan 1 & 2, Pagbilao 1 & 2, Masinloc 1 & 2, San Lorenzo Units 50 & 60, Therma Mobile 2 & 4, and Quezon Power, in addition to the continuing forced outage of Sta. Rita 40.

In terms of share to Meralco's total power requirements for the July supply month, PSAs, IPPs, and WESM contributed 53%, 40%, and 7%, respectively.

Movements in other charges

Universal charge increased by P0.04 per kWh, as collection for the previously deferred Universal Charge - Missionary Electrification resumes starting August 2014.Taxes and Subsidies, meanwhile, registered increases of P0.02 and P0.03 per kWh, respectively.

Meralco's Distribution Charge remained unchanged, while the Transmission Charge went down by P0.01 per kWh, due to the lower ancillary charges.

Pass through charges

Meralco reiterates that it does not earn from the pass-through charges, such as generation and transmission, among other bill components. Payment for the generation charge goes to the power suppliers such as the plants selling to Meralco through the WESM and under the PSAs and IPPs. Payment for the transmission charge, meanwhile, goes to the National Grid Corporation of the Philippines (NGCP). Of the total bill, only the distribution, supply, and metering charges accrue to Meralco.

Call for safety

With the onset of the rainy season and the onslaught of strong typhoons, Meralco is calling on its customers to be extra careful and be safety-conscious in dealing with electrical poles and wires that may be toppled by strong winds and rain. The public is advised to steer clear and never attempt to touch or remove any wires or other materials from these poles. In cases of flood, ensure that the main electrical power switch or circuit breaker in your home is off. Be sure to be dry at all times when in contact with any electrical facility to avoid any untoward incident.

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Meralco assists in restoring power in AlbayDate Published: August 15, 2014

Meralco Powering MindsDate Published: July 18, 2014

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