48 Philippine Power Utilities Charge Rates Above National Average as Electricity Costs Continue to Rise

 

Electricity prices across the Philippines continue to climb, but the national average tells only part of the story. While the country's average residential electricity rate reached a record P12.43 per kilowatt-hour (kWh) in June, many Filipino households are paying significantly more, according to an analysis by the Institute for Climate and Sustainable Cities (ICSC).

Using its PRESYO-PH electricity rate monitoring platform, the organization examined the actual residential charges imposed by 116 distribution utilities nationwide. The findings reveal that 48 local electricity providers billed consumers above the national benchmark, highlighting that the burden of expensive power extends far beyond the reported average.

The assessment comes shortly after the Department of Energy announced that the Philippines now records the highest electricity prices in Southeast Asia. That distinction underscores a growing challenge for consumers and businesses alike, as rising energy costs continue to place pressure on household budgets and economic productivity.

National Average Masks Higher Household Expenses

An average is often viewed as a reliable indicator, but in electricity pricing it can conceal the experience of a large portion of consumers. If nearly half of the country's on-grid distribution utilities charge more than the benchmark, the average no longer represents what many families actually pay each month.

ICSC's monitoring covered 106 on-grid and 10 off-grid distribution utilities. On-grid providers are connected to the national transmission system, allowing them to receive electricity from a wider network. Off-grid utilities, by contrast, operate independently in remote communities and islands, relying on localized generation, imported fuel, and battery storage.

Because of their operational advantages, on-grid utilities generally have lower costs. Despite this expectation, 48 of the 106 on-grid providers still recorded residential electricity rates exceeding the June national average.

Among those utilities, TARELCO I in Tarlac posted the lowest rate above the benchmark at P12.45 per kWh. At the opposite end of the list, Southern Leyte Electric Cooperative (SOLECO) registered the highest residential rate at P16.57 per kWh.

Meralco, the country's largest private distribution utility serving around 80 percent of the market, ranked ninth with a residential electricity rate of P14.48 per kWh during the same period.

Consumers Face Another Round of Increases

Electricity bills continued to rise in July after Meralco announced an upward adjustment of P0.3428 per kWh. The increase pushed its overall residential rate to P14.8261 per kWh.

For a household consuming 200 kWh monthly, that adjustment translates to roughly P69 in additional charges. While the amount may appear modest on paper, recurring increases accumulate over time and place added strain on family finances, particularly for households already coping with higher prices for food, transportation, and other essentials.

Generation Costs Remain the Biggest Driver

ICSC's analysis found that electricity generation consistently accounts for the largest share of consumers' bills. Data from the organization indicate that generation charges represent at least 46 percent of the total rate charged by distribution utilities, while the remaining balance covers transmission, distribution, taxes, and other regulatory fees.

This finding points to a deeper structural issue within the country's energy sector. Much of the Philippines' electricity production remains tied to imported fuel, making local power prices vulnerable to movements in global energy markets.

According to data cited from the US International Trade Administration, liquefied natural gas contributes approximately 22 percent of the Philippines' electricity generation in 2026. Since about 46 percent of the natural gas feedstock is imported, fluctuations in international fuel prices directly influence domestic electricity costs.

The relationship is similar to relying on imported ingredients for a staple food. Even when local demand remains unchanged, any increase in international prices or supply disruptions quickly raises the final cost paid by consumers.

Renewable Energy Seen as a Long-Term Solution

ICSC emphasized that reducing dependence on imported fuels requires expanding the country's use of indigenous renewable energy resources. A more diversified energy mix would not only help moderate exposure to volatile global fuel markets but also strengthen energy security and improve the long-term competitiveness of the Philippine economy.

Greater investment in renewable power sources could also enhance resilience against external economic shocks while helping stabilize electricity prices for households and businesses. As electricity demand continues to grow, developing locally available energy resources is increasingly viewed as a strategic necessity rather than simply an environmental objective.

Here is the compiled list of the highest-charging power utilities above the national average in June 2026:

Rank	Distribution Utility / Electric Cooperative		Grid Classification	Residential Rate (₱/kWh)
1		BISELCO (Busuanga Island)	Off-grid	₱24.92
2	FICELCO (First Catanduanes)		Off-grid	₱19.44
3	ORMECO (Oriental Mindoro)		Off-grid	₱18.29
4	SOLECO (Southern Leyte)		On-grid	₱16.57
5	AURELCO (Aurora)		On-grid	₱16.42
6	NORSAMELCO (Northern Samar)		On-grid	₱15.72
7	CAMELCO (Camiguin)		On-grid	₱15.14
-	LEYECO 3 (Leyte III)*		On-grid	₱15.13
8	LANECO (Lanao del Norte)		On-grid	₱14.53
9	KAELCO (Kalinga-Apayao)		On-grid	₱14.53
10	MERALCO (Metro Manila)		On-grid	₱14.48
11	LEYECO 4 (Leyte IV)		On-grid	₱14.46
12	ESAMELCO (Eastern Samar)		On-grid	₱14.18
13	CEBECO 2 (Cebu II)		On-grid	₱14.12
14	CEBECO 1 (Cebu I)		On-grid	₱13.96
15	MORE (Iloilo City)		On-grid	₱13.91
16	NEPC (Negros)		On-grid	₱13.84
17	NEECO 2 - A2 (Nueva Ecija 2)		On-grid	₱13.79
18	VECO (Visayan Electric)		On-grid	₱13.74
19	ILECO 3 (Iloilo III)		On-grid	₱13.64
20	ZANECO (Zamboanga del Norte)		On-grid	₱13.54
21	ILECO 1 (Iloilo I)		On-grid	₱13.51
22	SAMELCO 2 (Samar II)		On-grid	₱13.49
23	ILPI (Iligan Light & Power)		On-grid	₱13.39
24	BILECO (Biliran)		On-grid	₱13.31
25	BLCI (Bohol Light)		On-grid	₱13.26
26	ZAMSURECO 2 (Zamboanga del Sur II)		On-grid	₱13.24
27	GUIMELCO (Guimaras)		On-grid	₱13.14
28	QUEZELCO 1 (Quezon I)		On-grid	₱13.10
29	CELCOR (Cabanatuan)		On-grid	₱13.01
30	TEI (Tarlac Electric Inc.)		On-grid	₱13.00
31	BOHECO 2 (Bohol 2)		On-grid	₱12.99
32	NONECO (Northern Negros)		On-grid	₱12.96
33	LEYECO 5 (Leyte V)		On-grid	₱12.95
34	PALECO (Palawan)		Off-grid	₱12.93
35	FIBECO (First Bukidnon)		On-grid	₱12.92
36	BUSECO (Bukidnon II)		On-grid	₱12.90
37	PROSIELCO (Siquijor)		Off-grid	₱12.86
38	COTELCO (Cotabato)		On-grid	₱12.83
39	QUEZELCO 2 (Quezon II)		On-grid	₱12.81
40	BATANELCO (Batanes)		Off-grid	₱12.73
41	ANTECO (Antique)		On-grid	₱12.72
42	ISELCO 2 (Isabela II)		On-grid	₱12.72
43	CAGELCO 2 (Cagayan 2)		On-grid	₱12.68
44	OMECO (Occidental Mindoro)		Off-grid	₱12.62
45	DORELCO (Don Orestes Romualdez)		On-grid	₱12.60
46	CASURECO 2 (Camarines Sur II)		On-grid	₱12.59
-	TARELCO I (Tarlac I)*		On-grid	₱12.45

 

*Unranked utilities (Leyeco 3 and Tarelco 1) were explicitly highlighted in the ICSC study as falling within the higher-than-average bracket, with Tarelco 1 identified as having the lowest rate among the 48 on-grid utilities that surpassed the national benchmark.