ELECTRICITY consumers served by the Manila Electric Company (Meralco) face higher bills in the coming weeks as the sustained weakness of the Philippine peso drives up generation costs.
The local currency fell to its 33rd record low this year, closing at ₱64.17 against the US dollar on Tuesday amid rising global crude oil prices and increased demand for the greenback.
Meralco Senior Vice President and Regulatory Management Head Jose Ronald Valles confirmed Wednesday that the depreciation will directly affect rates, noting that over half of the utility’s power sources — particularly gas-fired generation — are tied to foreign exchange. “It will have an impact, especially on the passed-through generation cost,” Valles stated during a press conference in Pasig City, adding that the company is actively exploring ways to mitigate and offset the upward pressure on consumer pricing.
This month, household rates already rose by 31.91 centavos per kilowatt-hour (kWh), climbing from ₱14.7424 to ₱15.0615 per kWh compared to September — a change that translates to roughly ₱62 more on the monthly bill of a typical 200 kWh consumer.
However, Meralco Chairman and CEO Manny Pangilinan clarified that the peso’s decline will not affect the distribution component of the bill, explaining that the company carries no foreign-denominated debt and therefore faces no negative forex impact on distribution charges. He also pointed to the Energy Regulatory Commission’s (ERC) approved rate framework for the 2026–2030 regulatory period, which sets a clear and fixed revenue requirement that further insulates consumers from volatility in this portion of their electricity costs.
The ERC had previously approved a total revenue requirement of ₱342 billion for Meralco over the four-year regulatory cycle — significantly lower than the ₱532 billion the distributor had initially sought — and set the average 2027 distribution rate at ₱1.48 per kWh, well below both the company’s proposal and the figures suggested by other stakeholders.
Despite these constraints, Meralco reported a 12% rise in net income for the first nine months of 2026, reaching ₱44.8 billion, and projects full-year core earnings of approximately ₱56.6 billion, supported by strong performance across its generation and retail supply divisions. Consumers were advised to expect further adjustments in the generation charge portion of their bills as forex and fuel markets continue to evolve.
metrosundaily
