Oil-Driven Energy Crisis

Ancillary Services are backup power sources kept on standby to keep the power system stable whenever supply or demand suddenly changes. For example, when a large solar plant's output decreases due to cloud cover, or when demand increases because of simultaneous air conditioner use, backup power steps in to stabilize the grid.

The generation charge increased from P8.3864 per kWh to P8.7942 in May mainly due to the following factors:

• Weaker peso, which raised the cost of dollar‑denominated power supply from suppliers
• Higher WESM prices
• Higher fuel costs

These factors pushed generation costs upward for the month. Final generation charges for June remain subject to adjustment. 

No. Meralco does not earn from transmission and generation charges. These are passthrough charges remitted directly to generation companies and NGCP. Meralco's distribution charge has remained unchanged since August 2022.

Under the EPIRA law, electricity rates reflect the true cost of generating, transmitting, and distributing electricity. Generation charges change monthly depending on fuel prices, foreign exchange rates, supply conditions, and electricity spot market prices.

When global fuel prices increase, such as natural gas, the cost of generating electricity also rises. Natural gas accounts for about half of Meralco's supply mix, and generation companies include these fuel costs in the electricity price.

No. Electricity rates are regulated by the Energy Regulatory Commission (ERC). Only about 17.5% of the bill goes to Meralco, and the distribution charge has remained unchanged since August 2022.

Meralco optimizes its energy mix and follows the Department of Energy's Competitive Selection Process to ensure least-cost power supply while strengthening its systems to maintain reliable service.

Meralco has sufficient supply through its contracted generation companies. However, grid stability is managed by the NGCP, which may implement rotating load drops if necessary.

To know if your billing period and reading are correct, we can check a few things for you: 

• the number of days in the billing period 
• the type of reading used (actual or estimated) 
• and if there are any unusual spikes compared to your previous bills.  

If we see that an estimated or late reading was used, we’ll guide you through validation and what the next steps are.

Meralco sources power strategically to maintain cost-effective supply and provides efficiency tips, Lifeline and Senior Citizen discounts, KLoad, and tools like the Appliance Calculator.

Yes. Prepaid rates also change monthly based on electricity rates.

OCA and VCA are our digital service channels for us to support you better.  

OCA lets you set a scheduled visit at the Business Center, while VCA provides online assistance. Depending on your concern, we’ll guide you to the right option.

Yes. Succeeding electricity bills may be impacted by the following:

• The Middle East conflict affecting the peso-dollar exchange rate
• Higher power demand during hotter months

Meralco buys from power plants that use fuel to generate electricity. When global fuel prices rise, the cost of generating electricity also increases. Power plants include their fuel costs in the electricity price they charge.

No. Electricity rates are regulated by the Energy Regulatory Commission (ERC). As provided under the law, electricity rates in the Philippines reflect the true cost of generating, transmitting and distributing electricity and such rates are reviewed and approved by ERC.

Some parts of the electricity bill, especially the generation charge, change every month depending on factors such as, the movement of fuel prices, peso-dollar exchange rate, electricity supply conditions, and electricity spot market prices.

No, Meralco does not earn from higher generation and transmission charges. These are pass-thru charges remitted by Meralco to Generation companies and NGCP.

To ensure that we charge the least cost possible to our customer, Meralco continues to optimize its energy mix, manages its exposure to volatile Wholesale Electricity Spot Market, and secures lower-cost replacement power whenever needed. At the same time, Meralco prepares its systems and operations to ensure reliable electricity and service as demand increases.

Additionally, Meralco offers energy efficiency and conservation tips to help you manage your electricity bill and lower operational costs.

For long-term cost management, businesses may also explore Meralco’s Customer Choice Programs through your Relationship Manager:

• Competitive Retail Electricity Market (CREM) – Allows qualified businesses to choose their Retail Electricity Supplier (RES) and negotiate competitive electricity rates.
• Retail Aggregation Program (RAP) – Enables businesses to combine their electricity demand to access competitive retail supply.
• Green Energy Option Program (GEOP) – Allows eligible customers to source renewable energy from their preferred supplier to support sustainability and manage long-term costs.

Businesses may also take advantage of other Meralco services to further manage electricity costs:

• Peak/Off-Peak (POP) – Offers time-of-use pricing where electricity is cheaper during off-peak hours. Businesses can shift energy-intensive operations to these periods to reduce electricity costs and improve operational efficiency.
• Net Metering (NM) – Allows businesses with solar installations to export excess electricity back to the grid in exchange for bill credits. This helps lower overall electricity expenses and maximize the value of renewable energy investments.

Connect with your Biz Partner Manager or Enterprise Relationship Manager to learn more about these programs.

There is a possibility that the ILP may be activated during the summer months if NGCP places the Luzon grid on Red Alert. In situations where available generation is low and electricity demand is high, the Department of Energy (DOE), Energy Regulatory Commission (ERC) and the National Grid Corporation of the Philippines (NGCP) may call for the implementation of the ILP to help maintain grid stability.

Participating businesses may be requested to reduce their demand from the grid. This helps free up electricity for other consumers and can prevent wider power interruptions during periods of supply shortage.

The current ERC formula for ILP de-loading compensation already accounts for recent movements in diesel prices. This is because the calculation uses the prevailing diesel price as of the end of the previous calendar month in the city or municipality where the participant is located.

For example, for an April activation, diesel prices as of end-March 2026 will be used—ensuring that recent price increases are already reflected in the compensation.

Businesses can start by adopting proactive energy efficiency measures to help manage electricity consumption. Simple practices such as maintaining air conditioning units, optimizing lighting use, and staggering the start-up of heavy equipment can help reduce energy use and control costs. You can also consider flexible work arrangements, such as work-from-home setups, when possible, to help lower energy consumption in offices or facilities.

For long-term cost management, businesses may also explore the following Customer Choice Programs:

• Competitive Retail Electricity Market (CREM) – Allows qualified businesses to choose their Retail Electricity Supplier (RES) and negotiate competitive electricity rates to better manage energy costs.
• Retail Aggregation Program (RAP) – Enables multiple businesses to combine their electricity demand so they can access competitive retail supply even if they do not individually meet the required demand threshold.
• Green Energy Option Program (GEOP) – Allows eligible customers to source renewable energy from their preferred supplier, helping support sustainability goals while managing long-term energy costs.

Businesses may also take advantage of other Meralco services to further manage electricity costs

• Peak/Off-Peak (POP) – Offers time-of-use pricing where electricity is cheaper during off-peak hours. Businesses can shift energy-intensive operations to these periods to reduce electricity costs and improve operational efficiency.
• Net Metering (NM) – Allows businesses with solar installations to export excess electricity back to the grid in exchange for bill credits. This helps lower overall electricity expenses and maximize the value of renewable energy investments.

Connect with your Biz Partner Manager or Enterprise Relationship Manager to learn more about these programs.

The declaration of a National Energy Emergency is a proactive step by the government to ensure readiness and prevent potential supply issues. At this time, the DOE does not foresee widespread power outages. However, periods of tight supply may occur, such as due to simultaneous power plant and/or transmission outages.

The Department of Energy (DOE), together with industry stakeholders, is implementing measures to strengthen supply and maintain grid stability.