Philippines ERC Moves to Ease May 2026 Electricity Rate Hike as Meralco Revises Generation Charge Increase

The Energy Regulatory Commission (ERC) has acknowledged the proposed mitigating measures of Manila Electric Company (Meralco) aimed at reducing the impact of higher electricity rates on consumers for the May 2026 billing period, amid rising global fuel prices and ongoing power supply pressures.

According to Meralco’s submission to the Commission, generation charges were initially projected to increase by approximately PhP 1.0277 per kilowatt-hour (kWh). The anticipated rise was primarily driven by higher electricity supply costs, escalating global fuel prices, and the continued depreciation of the Philippine Peso against the US Dollar due to geopolitical tensions in the Middle East.

To cushion the impact on consumers, Meralco proposed the earlier implementation of adjustments under its ERC-approved Power Supply Agreements (PSAs). The mechanism would allow specific cost adjustments from power suppliers to be reflected earlier, helping lower the projected increase in generation charges from PhP 1.0277/kWh to around PhP 0.4350/kWh.

The ERC said it raised no objection to the proposal, subject to verification, review, and the submission of complete supporting documents and reportorial requirements.

ERC Chairperson and CEO Francis Saturnino C. Juan stated that the Commission continues to pursue practical and lawful measures to protect consumers from sudden spikes in electricity prices.

“We understand the burden that rising electricity prices bring to Filipino households, especially during periods of global uncertainty and increasing fuel costs. The ERC continues to work closely with distribution utilities and other industry stakeholders to identify measures that can help reduce the impact on consumers,” Chairperson Juan said.

He further noted that while some electricity costs are influenced by international fuel prices and market conditions beyond domestic control, the ERC remains committed to ensuring that all charges passed on to consumers are properly reviewed, transparent, and reasonable.

The ERC also emphasized that it has strengthened its monitoring and oversight of electricity rates, particularly during periods of significant price increases. Distribution utilities experiencing substantial increases in generation charges are required to submit detailed reports and supporting documents to facilitate prompt evaluation of possible mitigating measures.