ERC order trims bills even as generation costs move higher.
Meralco announced lower residential electricity rates for May 2026 as it begins refunding customers for two years’ worth of distribution charges.
Households will see their electricity rate ease to ₱14.3345 per kilowatt-hour, or ₱0.0151 lower than April’s rate.
The lower residential rate follows an Energy Regulatory Commission (ERC) order directing Meralco to refund ₱0.4278/kWh over a period of 12 months beginning May.
Meralco currently owes ₱14.17 billion in refunds to its customers, following the completion of regulatory processes on distribution charges covering the period from July 2022 to December 2024.
Tax cuts and lower transmission charges also contributed to the lower rate.
However, the generation charge went up to ₱8.7942 per kWh due to increasing costs among energy suppliers, driven by volatile fuel prices and a weaker peso.
A small win for the summer budget. Meralco rates drop in May as a massive ₱14 billion refund kicks in.
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Reading your May Meralco bill
Check the refund line. Look for a specific line item in your May bill mentioning the ERC Distribution Refund. It should be calculated based on your total consumption multiplied by ₱0.4278.
Because the generation charge is high, even a lower rate can result in a higher total bill if you are running air conditioning longer due to the heat. Use your Meralco app to track daily consumption and avoid moving into a higher "tier" of pricing.
If you are a business owner, check if you are eligible for the Peak/Off-Peak (POP) program. By shifting high-energy operations to late-night hours when demand is lower, you can further lower your average cost per kWh, compounding the savings from the ERC refund.
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