Ched Rick Gatchalian

Article (news)

Spot market prices lower in September, but pressure remains for October power rate

Alvin Elchico

ABS-CBN News

MANILA – There is pressure for the overall rate of Meralco to rise this month.Though not all bill components were in, Meralco said factors like the peso-dollar exchange and the extension of the interim contract with Firstgas&#x27; natural gas plant, could push the overall rate up. Meralco was set to announce the changes in the overall rate by Friday.<div>PRICES AT THE SPOT MARKET DOWN</div>Meanwhile, overall prices at the spot market were down for the September billing. The overall reduction was at P1.55/kwh from the previous month&#x27;s P4.59/kwh to P3.04/kwh.For the Luzon market, the reduction was more than P1.00, from P3.76/kwh to P2.57/kwh.For the Visayas, from P6.40/kwh, the spot market prices went down to P4.02/kwh. And for Mindanao, the slash was almost P2.50/kwh, from last month&#x27;s P6.66/kwh to P4.19/kwh.But according to the Independent Electricity Market Operator of the Philippines, Meralco and other utilities and electric coops got less from the market than the previous month.The IEMOP says while prices at the spot market were down, overall prices of electric coops and power utilities may still go up due their other contracts with power supplier.<div>MERALCO ON VAT REMOVAL</div>While it was up to government if it wanted to remove the 12-percent value added tax on electricity, Meralco said power rates could considerably go down if the VAT aws removed.For 200 kilowatthour users for example, based on the September 2025 billing, the VAT is around P1.33/kwh.Based on computation, an ordinary consumer using 200 kwh per month pays around P265 for vat out of the overall bill of around P2,600.<div><a href="https://www.abs-cbn.com/news/business/2025/5/20/tv-patrol-bayan-muna-humirit-alisin-ang-vat-sa-kuryente-2110">TV PATROL: Bayan Muna, humirit: Alisin ang VAT sa kuryente</a></div>Energy Secretary Sharon Garin had said she would support any legislation that would remove the value added tax on electricity.

Though not all bill components are in, Meralco said factors like the peso-dollar exchange and the extension of the interim contract with Firstgas' natural gas plant, could push the overall rate up.

Though not all bill components are in, Meralco said factors like the peso-dollar exchange and the extension of the interim contract with Firstgas' natural gas plant, could push the overall rate up.