DOE Flags Possible Power Rate Hike This June

The Department of Energy (DOE) on Saturday warned consumers of a potential increase in electricity transmission charges for the June 2025 billing cycle, citing higher reserve market prices in May.

“Initial information shows a possibility of an increase in the transmission charge due to a possible uptick in reserve market prices for the May supply month in comparison with the previous month based on publicly available data,” the DOE said in a statement.

Reserve market prices affect ancillary service charges—fees incurred to maintain power grid reliability—which are billed by the National Grid Corporation of the Philippines (NGCP) and passed on to consumers as part of their monthly electric bills.

While transmission charges may climb, the DOE expressed cautious optimism that generation charges, which typically make up the bulk of electric bills, will remain stable following a notable drop in May.

“We hope it remains flattish and that there will be no significant movement for the June billing month following the significant decrease last May,” the department said.

However, the DOE added that any increase in generation costs could be cushioned by falling prices in the Wholesale Electricity Spot Market (WESM), where power distributors procure electricity on a short-term basis.

“Should there be any increase, we hope that this could be mitigated by lower prices from the Wholesale Electricity Spot Market (WESM) as announced by the spot market operator,” the DOE said.

Adding further relief, the PHP 19.96 billion refund ordered by the Energy Regulatory Commission (ERC) is still being implemented, offering a potential buffer against rising costs.

“We also hope that the continued implementation of the PHP 19.96 billion refund… will help mitigate possible increases in power bill components,” the DOE noted.

According to the ERC, the refund was approved to correct overcollections by distribution utilities and is being credited to consumers through monthly bill adjustments.

Power distributors, including Manila Electric Co. (Meralco), have yet to announce any official rate adjustments for June as they await finalized data from suppliers, market operators, and regulators.

The DOE continues to monitor developments in the reserve market and spot pricing trends, which are increasingly influenced by fluctuations in demand, fuel prices, and grid reliability constraints.

Electricity rates in the Philippines are among the highest in Southeast Asia, with pricing composed of generation, transmission, distribution, taxes, and universal charges—making any shift in the reserve market a key driver of bill changes.