The Manila Electric Company (Meralco) announced Monday that electricity rates will decrease by ₱0.0428 per kilowatt-hour (kWh) for the August billing period.
The reduction will bring the overall rate for a typical household to ₱14.7833 per kWh, down from ₱14.8261 per kWh in July.
Meralco said the decrease is mainly driven by the implementation of the Energy Regulatory Commission (ERC)-approved refund, which offsets increases in other bill components.
"The main driver was the ERC-approved refund, that was able to offset other increases in the other bill components. So the refund is equivalent to ₱0.5861 per kWh," Meralco Vice President and Head of Corporate Communications Joe Zaldarriaga said.
Meralco Head for Utility Economics Lawrence Fernandez said the August reduction marks the first month of implementing the Average Weighted Average Tariff (AWAT) refund approved by the ERC.
"So 'yung naging main reason for the overall reduction ay 'yung unang buwan ng pagi-implement ng tinatawag na AWAT refund na inaprubahan ng ERC," Fernandez said.
For a typical household consuming 200 kWh, the adjustment translates to an estimated ₱9 reduction in the monthly electricity bill based on the overall rate decrease. However, Fernandez said the AWAT refund itself accounts for a larger ₱117 deduction for the same consumption level.
The ERC previously ordered Meralco to refund ₱9.5 billion to customers following the commission's approval and confirmation of the company's true-up calculation of its Actual Weighted Average Tariff (AWAT) for January to June 2025 and July to December 2025.
Meralco said the reduction could have been larger without increases in other charges. Generation charges rose by ₱0.0296 per kWh, while ancillary service charges increased by ₱0.3024 per kWh. Taxes and other charges also posted a net increase of ₱0.2113 per kWh.
Meralco explained that generation and transmission charges are pass-through costs paid to power suppliers and the National Grid Corporation of the Philippines, respectively, while taxes, universal charges, and the Feed-in Tariff Allowance are remitted to the government.
