Meralco August 2026 rates drop after ERC refund

Manila Electric Co. customers will see a slight reduction in their electricity bills for August, as a major regulatory refund offsets increases in several pass-through charges. The country's largest power distributor announced on August 10 that the overall rate for a typical household will decrease by P0.0428 per kilowatthour to P14.7833 from P14.8261 per kWh in July. For residential customers consuming 200 kWh, this translates to a savings of approximately P9 on their total monthly bill.

The rate cut is primarily driven by a P9.5 billion refund approved by the Energy Regulatory Commission, equivalent to P0.5861 per kWh for residential customers. This rebate, which will be implemented over six months, covers the difference between Meralco's actual weighted average tariff and its approved distribution tariff for the full year of 2025. It will appear on bills as "AWAT Refund-Collect 2" and is separate from an existing refund of P0.4278 per kWh.

However, the reduction was tempered by higher pass-through costs. Transmission charges from the National Grid Corporation of the Philippines rose by P0.3024 per kWh due to increased ancillary service fees. Taxes and other...