Manila Electric Company (Meralco) customers are bracing for increased electricity bills. A recent decision by the Energy Regulatory Commission (ERC) allows the utility to recover over ₱4 billion in costs associated with a significant gas-fired power plant.
The ERC approved Meralco’s request to pass on monthly fixed fees owed to its affiliate, Excellent Energy Resources, Inc. (EERI), stemming from power supplied early last year. This covers ₱3.67 billion and an additional $6.37 million, tied to the plant’s operational declaration.
This translates to an extra ₱0.1099 per kilowatt-hour (kWh) for consumers. Initially, the ERC authorized a 12-month recovery period, but recognizing current economic pressures, has delayed the start of the increase.
The implementation of this additional charge is now scheduled for September 2026. The ERC is mindful of rising electricity prices and encourages a staggered approach to adjustments for all distribution utilities facing substantial generation cost increases.
EERI operates a 1,275-megawatt combined cycle power plant in Ilijan, Batangas. Ownership is shared among Meralco subsidiaries, Aboitiz Power Corp., and San Miguel Global Holdings Corp., reflecting a complex energy landscape.
Specifically, Chromite Gas Holdings, Inc., a joint venture between Meralco PowerGen Corp. and Therma NatGas Power, Inc., holds a 67% stake in EERI, with San Miguel Global Holdings Corp. owning the remaining 33%.
The ERC’s partial approval of a 15-year power supply agreement between Meralco and EERI came late last year, even as the acquisition of the gas plant was still pending. This decision acknowledges the plant’s operational status despite ongoing administrative processes.
While the plant’s units haven’t yet received full certification from the ERC, they have obtained the necessary approval to connect to the national grid, managed by the National Grid Corp. of the Philippines (NGCP). The ERC bases the recovery period on the date of this grid connection.
Meralco serves over 8.2 million customers across Metro Manila and surrounding provinces, including Bulacan, Cavite, Rizal, and portions of Laguna, Batangas, Pampanga, and Quezon. The company is the largest private electricity distributor in the country.
This news follows an earlier rate increase in April, when Meralco raised prices by ₱0.5335 per kWh, reaching ₱14.3496 per kWh. That increase was primarily driven by the weakening Philippine peso and its impact on generation costs.
Beacon Electric Asset Holdings, Inc., Meralco’s controlling stakeholder, has ties to PLDT Inc. and MediaQuest Holdings, Inc., demonstrating the interconnectedness of major corporations within the Philippine economy.
