Power Generation Rates Drop in May Amid Lower Fuel Costs
Power generation rates across most Philippine regions declined in May 2025, bringing relief from the record-high electricity prices seen in April. Preliminary data from the Energy Regulatory Commission (ERC) show a downward shift in average generation rates charged by distribution utilities to residential consumers, reversing the upward trend triggered by the dry season. In the

By Staff Writer
Power generation rates across most Philippine regions declined in May 2025, bringing relief from the record-high electricity prices seen in April.
Preliminary data from the Energy Regulatory Commission (ERC) show a downward shift in average generation rates charged by distribution utilities to residential consumers, reversing the upward trend triggered by the dry season.
In the National Capital Region, average rates reached PHP 7.8 per kilowatt-hour in April—the highest since 2013—but dropped in May along with rates in most other regions.
Only MIMAROPA and the Bangsamoro Autonomous Region in Muslim Mindanao recorded continued increases in May rates, according to the ERC.
The commission attributed the decline to a combination of improved supply conditions and lower fuel costs, noting a “healthy supply margin in the Wholesale Electricity Spot Market (WESM).”
System-wide average supply at the WESM rose to 22,218 megawatts in May 2025 from 19,648 MW in the same month last year.
At the same time, average demand dropped to 15,169 MW from 15,688 MW year-on-year, creating a surplus of 4,945 MW or 22.3 percent of total supply.
Cheaper imported coal and a stronger Philippine peso also played critical roles in lowering costs.
“Indonesian coal registered its lowest monthly average price for the year at USD 115.8 per metric ton in May 2025,” the ERC reported.
The peso appreciated to an average of PHP 55.6 per U.S. dollar during the month, further easing the financial pressure on power generators.
Since January 2023, the average electricity rate faced by consumers has decreased by PHP 2.4 per kilowatt-hour, reflecting the broader decline in generation costs.
ERC Chairperson and CEO Monalisa C. Dimalanta credited the sustained price decline to market improvements and regulatory reforms.
“The continuing decline in generation rates since 2023 results from improved general market conditions and increased supply in the system, as well as the Commission’s diligent enforcement of rules and more timely action on filings with the ERC,” she said.
Dimalanta emphasized that the ERC remains committed to vigilance and oversight.
“Even as we see these improvements, the ERC will not relax its proactive stance of close monitoring, particularly of global fuel prices, bilateral contracting and market behavior, to ensure the delivery of least-cost electricity to consumers,” she added.
Article Information
Comments (0)
LEAVE A REPLY
No comments yet
Be the first to share your thoughts!
Related Articles

Government expands aid as inflation hits 7.2%
The government has stepped up measures to cushion vulnerable sectors from rising prices as inflation accelerated to 7.2 percent in April 2026, driven by sharp increases in food, fuel, transport and utility costs amid the prolonged Middle East conflict. The Department of Economy, Planning, and Development said the government is intensifying targeted interventions to soften


