Higher electric bills due to El Niño

“The most expensive electricity is no electricity,” Joe Zaldarriaga, official spokesman of the Manila Electric Company (Meralco), quipped at our Kapihan sa Manila Bay news forum last Wednesday. As far as the 8.3 million customers in the Meralco franchise areas are concerned, however, he downplayed fears of power supply shortage and rate hikes that will ensue from the ongoing “Super El Niño” phenomenon projected to last until middle of next year.

“So from the standpoint of power supply adequacy, we are prepared to serve our customers,” Zaldarriaga asserted.

Zaldarriaga confessed he merely borrowed this quote from Governor of Leyte Jericho “Icot” Petilla. Serving as Department of Energy (DOE) secretary from 2012 to 2015, Petilla first declared it during the administration of the late president PNoy Aquino. Petilla argued that power generators, distributors and cooperatives must be financially viable enough to invest in new capacity, reserves and grid stability rather than cutting corners to artificially suppress electricity prices at the risk of crippling power supply shortages.

The same principles were echoed by Arnel Casanova, senior vice president and head of government and external affairs, who joined Zaldarriaga at our Kapihan sa Manila Bay. In fact, Casanova disclosed, Meralco continues to extend its reach and assistance to electric cooperatives, especially to save moribund operations of power utilities in Mindoro to as far as Palawan and Sultan Kudarat.

Meralco serves the electricity needs of its customers in Metro Manila and the CALABARZON, or the Cavite-Laguna-Batangas-Rizal-Quezon. For the 125-year old power utility firm, Casanova cited Meralco shares its best practices, experience and technology with these electric coops anywhere in our country. Casanova clarified, however, these electric coops must conform with requirements of the National Electrification Administration (NEA) in order to comply with the requirements of the Electric Power Industry Reform Act (EPIRA) as well as the Cooperative Development Act.

Casanova credited Meralco’s “gold standard” of efficient, reliable and cost-effective operations and lately also investing in technology and capital-intensive renewable energy generation in contributing to the energy supply security of our country.

For now though, Zaldarriaga doused cold water on the looming power demand-and-supply scenario painted by the DOE currently headed by Secretary Sharon Garin. The DOE announced recently there will be pressure on supply and demand, and also on electricity rates among the projected impact of prolonged El Niño period in our country.

Incidentally, both Petilla and Garin are veteran politicians. Petilla’s track record as Leyte’s local chief executive for the longest time, first from 2004 to 2012 and again in 2022-2025 up to present. On the other hand, Garin first served for 12 years as a party-list representative in Congress before President Ferdinand “Bongbong” Marcos Jr. (PBBM) recruited her initially as DOE undersecretary. PBBM later named her DOE chief in the Cabinet shake-up in July 2025.

Zaldarriaga, who is also Meralco’s vice president and head of corporate communications, admitted they get guidance from the Energy Regulatory Commission (ERC) aside from the monitoring of the Philippine Atmospheric, Geophysical and Astronomical Services Administration (PAGASA) on all weather events affecting power supply, from El Niño to its opposite, La Niña or the long wet, rainy period.

“With the higher temperature expected during the El Niño, we see increased electricity consumption,” Zaldarriga conceded.

“That’s why we urge our customers to practice energy efficiency to manage their own (electricity) consumption,” he added.

Zaldarriaga cited Petilla’s quote to allay public fears and concern on the electricity needs, especially in the Meralco franchise areas. Petilla used the premise “the most expensive electricity is no electricity” to emphasize that supply reliability and preventing blackouts must take priority over cheap rates alone. Petilla stated this during media interviews during the Luzon power supply tight margins and rate hike controversies around January 2014 when he argued for securing continuous power supply as the top priority even if generation charges were higher.

The higher cost of electricity in the Philippines compared to our neighbors in Southeast Asia exceed P12 to P14+ per kilowatt hour (kWh). However, the estimated total losses resulting from power interruptions like blackouts inflict far greater economic damage on us households, small businesses, hospitals, industries as well as the rest of the country.

“We are closely working with the government, particularly with the DOE, and relevant agencies as we monitor the developments and possible impact of this El Niño,” Zaldarriaga pointed out.

“So while we continue to monitor developments and coordinate closely with the government and the grid operator, our customer can be assured that Meralco is taking the necessary steps to remain steady and ensure reliable service,” Zaldarriaga stressed.

For his part, Casanova mentioned the updated contingency plans on electricity demand management corresponding to any power supply disruption, whether due to natural calamities or manmade disasters. He specifically referred to the Interruptible Load Program (ILP) that automatically kicks in should there be a major power supply shortage problem.

Under the ILP, Casanova explained, the participating large-load customers of Meralco – like malls, factories and big business establishments – will use their own generator sets (gensets) temporarily instead of getting power from the grid.

Or the participating ILP customers of Meralco will reduce or downgrade their operations to cut down on their electricity consumption, he added. Thus, the ILP lessens the strain at the grid and frees up the capacity to reduce power interruptions, he pointed out.

“We count on the collective action, especially when supply is tight. We encourage more businesses and industrial establishments to participate in the ILP,” Casanova said.

Zaldarriaga noted with optimism the ILP has proven to be effective in the demand-side management of electricity, which Meralco did in the past years of El Niño and every dry season when there’s risk of power supply deficiency.

But it is undeniably the continuing Middle East conflict and its consequent economic difficulties to plunging peso-dollar exchange rate that push up our monthly electric bills. More than the looming power supply shortage problem, it’s the electricity bills that hurt us more directly in our pockets.