June power rates rise 9% despite relief measures

By Francis Allan L. Angelo

Average household electricity rates in the Philippines rose by 9% in June 2026, pushing power costs closer to levels last seen during the 2022–2023 global energy crisis despite lower transmission charges and temporary regulatory relief measures.

The Institute for Climate and Sustainable Cities said the increase reflected the continuing pressure on Filipino households from high power costs, particularly as generation charges remained vulnerable to imported fossil fuel prices.

According to Power Rates and Energy Supply Overview – Philippines, or PRESYO-PH, the average residential electricity rate based on available data from 116 distribution utilities increased to PHP 12.51 per kilowatt-hour in June from PHP 11.47 per kWh in May.

The month-on-month increase amounted to PHP 1.04 per kWh, or about 9%.

The increase came despite lower transmission charges for the June billing period.

It also followed the suspension of the collection of the Green Energy Auction Allowance, or GEA-ALL.

The Energy Regulatory Commission also approved staggered billing schemes for some distribution utilities after elevated Wholesale Electricity Spot Market prices pushed up generation costs.

ICSC said the relief measures were not enough to offset higher generation costs under utilities’ power supply contracts.

Generation charges typically account for 50% to 60% of residential electricity bills.

Amounts corresponding to distribution charges, universal charges, and subsidies remained largely unchanged.

The increase was sharper in several areas across the country.

Between the May and June 2026 billing periods, some distribution utilities recorded month-on-month residential electricity rate increases of more than PHP 4.00 per kWh.

Several other utilities posted increases exceeding PHP 3.00 per kWh.

According to the ERC, these steep month-on-month increases prompted staggered payment arrangements for affected distribution utilities to help cushion the impact on consumers.

The latest rate movement raises concerns that average electricity prices could again approach levels seen during the height of the global energy crisis in 2022 and 2023.

Nationwide average residential rates peaked at around PHP 13 per kWh in early 2023 after the temporary Indonesia coal export ban and the outbreak of the war in Ukraine disrupted global fuel markets.

“Filipino families should not have to bear the burden of volatile global fuel prices every time they receive their monthly electricity bills. Much of today’s increase is being driven by higher generation costs, which remain closely tied to imported fossil fuels—particularly coal and imported natural gas,” stressed ICSC Energy Transition Advisor Alberto Dalusung III.

“Investing in more renewable energy allows us to gradually reduce that dependence and build a power system that is affordable and less vulnerable to price shocks,” Dalusung added.

The June rate increase also highlights the limits of short-term interventions in shielding households from recurring power price spikes.

ICSC said accelerating the deployment of indigenous renewable energy, including rooftop solar, would offer a more durable path toward affordable, reliable, and secure power.

Rooftop solar allows households to generate part of their own electricity, reducing exposure to volatile fuel-linked generation costs.

The group said the latest trend reinforces the need to diversify the country’s energy mix and reduce dependence on imported coal and liquefied natural gas.

For households, the June increase means higher monthly electricity bills at a time when power remains a major cost pressure for families and small businesses.