Lower Rates this January 2026
MERALCO CUSTOMERS TO SEE LOWER POWER RATES THIS JANUARY
MANILA, PHILIPPINES, 12 JANUARY 2026–Following a reduction in power rates last month, the Manila Electric Company (Meralco) announced today another decrease of P0.1637 per kWh in electricity rates this January.
This further brings down the overall rate for a typical household to P12.9508 per kWh this month from P13.1145 per kWh last December.
“While there were upward pressures on certain cost components this January, overall electricity rates declined — for the second straight month. We hope that this development will bring relief to all our customers as we start another year,” Meralco Vice President and Head of Corporate Communications Joe R. Zaldarriaga said.
“For our residential customers with a typical consumption of 200 kWh, the adjustment this month translates to a reduction of around P33 in their total electricity bill,” he added.
Lower transmission charge sustains overall decrease; generation and other charges also down
Lower transmission charge sustained the overall electricity rate reduction this January, with the residential transmission rate dropping by P0.10 per kWh to P1.0368 per kWh mainly due to lower ancillary service charges incurred by the National Grid Corporation of the Philippines (NGCP) from its Ancillary Service Procurement Agreements and the Reserve Market.
Also contributing to this month’s rate cut was the lower generation charge, which decreased by P0.0171 per kWh to P7.7471 per kWh owing to lower charges from the Wholesale Electricity Spot Market (WESM) and Power Supply Agreements (PSAs).
Charges from WESM went down by P1.1898 per kWh due to improved supply situation in the Luzon Grid with the reduction in both average peak demand and capacity on outage by 367 MW and 237 MW, respectively.
Charges from PSAs also decreased by P0.0516 per kWh as the San Buenaventura Power Ltd. Co. (SBPL) plant went back online, following its scheduled outage last month. Meanwhile, charges from Independent Power Producers (IPPs) increased by P1.4879 per kWh due to higher fixed fees of Sta. Rita following the Energy Regulatory Commission’s (ERC) confirmation of First Gas Power Corp.’s computation method under the interim extension of its contract with Meralco. The Peso’s depreciation against the US dollar also contributed to the increase since 99% of IPP costs were dollar-denominated.
WESM, PSAs, and IPPs accounted for 7%, 71%, and 22% respectively, of Meralco’s total energy requirement for the period.
Further pulling down the overall rates this January was the P0.0837 per kWh net reduction in taxes and other charges.
Collection of new renewable energy subsidy begins
These downward movements in the bill components were able to offset the implementation of the Green Energy Auction Allowance (GEA-All) which begins this month, in accordance with a recent directive of the ERC. The approved GEA-All is equivalent to P0.0371 per kWh.
The GEA-All applies to all on-grid end-users and is intended to cover the differential amount required to fully compensate GEA-eligible plants, with collections remitted to the National Transmission Corporation (TransCo).
Pass-through charges for generation and transmission are paid to the power suppliers and the grid operator, respectively, while taxes, universal charges, and renewable energy subsidies are all remitted to the government.
Meralco’s distribution charge, on the other hand, has not moved since the P0.0360 per kWh reduction for a typical residential customer in August 2022.
Meralco warns public anew against theft of electrical facilities
In another development, Meralco reminded the public of the dangers posed by the theft of its electrical facilities including power cables following a recent attempt in Quezon City that resulted in a temporary disruption of electricity service to nearly 8,000 customers.
The incident also left the suspect in critical condition after sustaining flashover burns. Power service was restored after four (4) hours following Meralco crews' quick response in repairing the affected lines.
“This incident underscores the grave dangers of stealing power cables and electrical facilities. Beyond the inconvenience caused by service interruptions, these acts pose life-threatening risks due to the high voltage of Meralco facilities. Any contact with energized facilities can lead to electric shock, severe injuries, or even death,” Meralco Senior Vice President and Head of Networks Froilan J. Savet said.
“Once again, we urge the public to cooperate in maintaining safe and reliable electricity service by reporting any suspicious activity involving Meralco facilities,” he added.
In 2025 alone, the Meralco recorded 285 theft incidents of electrical facilities including power cables. Four (4) of these incidents resulted in physical injuries.
The company warned that theft of power cables and other electrical facilities, such as electric meters, is a violation of Republic Act No. 7832 or the Anti Electricity Pilferage Act, which carries penalties of imprisonment and fines.
For electricity service concerns, Meralco reiterated that its customers may reach them through the MyMeralco app and on its official social media accounts such as Facebook (www.facebook.com/meralco) and X (@meralco). Customers may also text their concerns to 0920-9716211 or 0917-5516211 or contact the Meralco Hotline at 16211.
| January 2026 | Generation | Download PDF |
| January 2026 | Typical Consumption Level | Download PDF |
| January 2026 | Summary Schedule of Rates | Download PDF |
| December 2025 | Summary Schedule of Rates | Download PDF |
| December 2025 | Generation | Download PDF |
| December 2025 | Typical Consumption Levels | Download PDF |