Meralco expects peso weakness to push up power costs
The warning follows an October household tariff increase of 31.91 centavos per kWh, driven by higher generation costs.
Meralco expects the Philippine peso’s depreciation to put further upward pressure on customers’ electricity bills through generation costs. The utility said it was looking for ways to limit the impact after the currency weakened to ₱64.17 against US$1 amid rising global crude oil prices.
At a Pasig City briefing, Jose Ronald Valles, Meralco’s senior vice president and regulatory management head, said foreign-exchange movements affected generation charges passed through to consumers. He singled out gas-powered suppliers as exposed to currency fluctuations and said the company was working to offset potential increases.
For October, the household tariff reached ₱15.0615 per kilowatt-hour (kWh), compared with ₱14.7424 per kWh in September. Meralco attributed the 31.91-centavo increase to more expensive generation and said a customer consuming 200 kWh would pay about ₱62 more.
Chairman and CEO Manny Pangilinan said the currency’s decline would leave the distribution charge unaffected, citing Meralco’s lack of foreign debt.
The Energy Regulatory Commission has authorised around ₱342 billion in revenue requirements covering July 2026 to June 2030, compared with Meralco’s request for ₱532 billion. It also set the average 2027 distribution rate at ₱1.48 per kWh; the company had sought ₱2.34 per kWh.
