Brace Yourselves: Meralco Wants Its First Rate Hike in 11 Years to Fund a ₱272 Billion Grid Overhaul

After more than a decade of frozen distribution rates, Meralco is finally asking for a tariff increase — and it’s tied to a massive ₱272 billion grid modernization plan that will run from 2027 to 2030.

Meralco chairperson Manuel V. Pangilinan confirmed that the power giant has filed an application with the Energy Regulatory Commission (ERC) to adjust its distribution rates for the first time since July 2015. ‘This is our 11th year of flat distribution tariffs, so we deserve some adjustment,’ Pangilinan told reporters.

The planned capital spending is staggering: ₱50.80 billion in 2027, ₱59.87 billion in 2028, ₱59.67 billion in 2029, and a peak of ₱71.17 billion in 2030. A centerpiece of the investment is the Grid Edge Operations and Control Center, set for completion in 2030, which will manage electric vehicles, battery storage systems, and residential solar installations.

The silver lining for consumers worried about summer brownouts? Pangilinan said the current power market is ‘well-supplied’ with an oversupply in the system, meaning shortages are unlikely in the near term. Hindi naman daw tayo mabbrownout this summer.

Still, the prospect of higher electric bills won’t sit well with Filipino households already feeling the pinch from rising costs. The ERC will have the final say — but expect this to be one of the most closely watched regulatory decisions of the year.

Source: Manila Bulletin