MANILA, Philippines — Household electricity bills are set to rise again as Manila Electric Co. (Meralco) announced its third straight month of rate hikes this April 2026. The utility giant attributed the increase primarily to the sharp depreciation of the Philippine peso against the U.S. dollar.
Effective this month, power rates will increase by 53 centavos per kilowatt hour (kWh), bringing the overall rate to P14.3496 per kWh from P13.8161 in March.
For residential customers, the adjustment translates to the following estimated increases in their monthly bills:
- 200 kWh consumption: Additional P107
- 300 kWh consumption: Additional P161
- 400 kWh consumption: Additional P214
- 500 kWh consumption: Additional P267
The primary driver for this month’s hike is the generation charge, which rose by P0.5257 per kWh.
- Peso-Dollar Exchange: The exchange rate jumped to P60.748 in late March, a 5% decline in the value of the peso in a single month. This level of volatility has not been seen since June 2022.
- Supply Impact: Because roughly 44% of Meralco’s power supply deals and almost all its gas plant costs are dollar-denominated, the weakening currency immediately inflates the cost of purchased power.
- Silver Lining: A slight decrease in transmission charges (down by 65 centavos) helped prevent an even steeper overall hike. Meralco’s own distribution charge has remained unchanged since August 2022.
While April’s hike was driven by currency, Meralco officials warned that the May bill might reflect the impact of the ongoing conflict in the Middle East.
- Lagged Fuel Costs: Lawrence Fernandez, Meralco VP and head of utility economics, explained that fuel arriving in April is already seeing higher prices due to regional instability. This will likely push generation costs up in the next billing cycle.
- Mitigating Measures: Regulators have implemented special operating guidelines and a new pricing mechanism to cushion steep jumps in costs, though an upward trend is still expected.
Despite the price pressure, Meralco assured its 8.2 million customers that there are currently no threats of rotating brownouts. The industry does not anticipate a supply deficiency in the Luzon grid during the peak summer months, thanks in part to the ongoing state of energy emergency measures.