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Workers inspect an electric meter installed above ground in Manila on January 11, 2024. Mark Demayo, ABS-CBN News

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Electric Meter Reading

Alvin Elchico

ABS-CBN News

MANILA -- Consumers must brace for higher electricity rates as the Energy Regulatory Commission approved the collection of more than P31 billion from Meralco to its four generator suppliers.In an order, the ERC authorized Meralco and its power generation partners, Phinma Energy Corp. (PHINMA), South Premiere Power Corp. (SPPC), Sual Power Inc. (SPI), and Panay Energy Development Corp. (PEDC) to recover P31.34 billion due to various changes in circumstances.Coal prices soared in 2022, which prompted suppliers and Meralco to ask the regulator to raise rates due to the staggering fuel costs triggered by the Russia-Ukraine war and Indonesia’s coal export ban. But the ERC then turned down the request, insisting that there is no basis to enable a &quot;change in circumstance.&quot;Generators went to court and eventually won the case in the Supreme Court, thus the order to recover costs from Meralco consumers. The P31.34 billion peso recovery from consumers translates to an increase of around P0.28/kwh. This will begin to be felt in March.ERC Chairman Nino Juan said the commission timed the start of the recovery after the earlier additional charge of P0.28/kwh, also related to the change in circumstance issue, will be finished by February 2026.According to Juan, to minimize the impact on consumers, the commission has decided to spread the recovery of the P31.34 billion over 36 months or 3 years.“Tapusin na natin ito, we have to act decisively nang sa ganun matapos na ang mapagbigyan na o maisakatuparan na ang naging desisyon ng korte suprema,&quot; Juan said.“Medyo ini-stretch talaga natin  para di gaanong maging kalaki yung maging adjustment na kakailangnin para humusto lang sya dun sa 28-centavos na mawawala after February,&quot; he added.<div> </div><div>&quot;WE TOLD YOU SO&quot; </div>Meanwhile, the Power4people Coalition said the billion-peso recovery only shows that consumers are at a disadvantage if utilities like Meralco continue to contract power supply from fossil fuels.Power4People Convenor Gerry Aracnes said overreliance on coal and gas results in higher electricity prices due to the embedded fuel costs tucked in the contracts, which will be passed on eventually to all consumers.Arances has been consistent in pushing utilities and electric cooperatives to scale up the use of renewable energy sources, which are way cheaper than fossil fuels. According to Arances, the situation will just worsen for all consumers if the government does not stop patronizing fossil fuels like coal and gas.

ERC approves collection of P31B from Meralco customers

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ERC approves collection of P31B from Meralco customers

Alvin Elchico,

ABS-CBN News

Published January 28, 2026 04:45 PM PHT

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Updated January 28, 2026 10:14 PM PHT

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Power

electricity

Meralco

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