Energy Crisis FAQs for Businesses

1. Why did my electricity bill increase this April?

Electricity bills this April increased primarily due to higher demand during the summer months, as hotter temperatures drive increased use of cooling systems.

In addition, the weaker peso against the US dollar, influenced by ongoing global developments in the Middle East, can affect the cost of power generation, which also contributed to higher rates.

These factors together have pushed electricity prices higher during this period.

2. Is the global fuel situation affecting electricity prices?

Yes. You can expect that electricity bills in April may be impacted by the following:

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

3. How will the global energy crisis drive Meralco’s rates?

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.

4. Does Meralco set the price of electricity?

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.

5. Why do electricity rates change every month?

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.

6. Does Meralco earn from higher generation and transmission charges?

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

7. What is Meralco doing to address rising electricity costs?

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.

8. Will there be an Interruptible Load Program (ILP) this summer that businesses will be asked to participate in?

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.

9. Will there be any changes to the ILP compensation computation given the increase in diesel prices due to global tensions?

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.

10. For my business, what can I do to help manage my electricity bill?

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.