Electric bill shock traced to generation charges By Lenie Lectura
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HE Manila Electric Company (Meralco) on Thursday said the rise in electricity bills for the past few months was driven by uncontrollable, surge-level generation charges, which are subject to strict regulatory oversight. Generation rate, a major component of an electric bill, is the cost of producing or purchasing electricity. This a pass-through charge paid by Meralco to its power suppliers. Meralco does not earn from this. “The recent electricity price
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MIDDLE EAST OIL PRODUCERS STEP UP PLANS TO BYPASS STRAIT OF HORMUZ
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increases pertain to generation charges, which reflect the spike in international fuel prices and peso depreciation as a result of the ongoing conflict in the Middle East,” said Meralco senior vice president Atty. Jose Ronald Valles. “The effect of these factors on the generation charges are beyond the control of Meralco.” Besides, Meralco’s procurement of its power requirements could not happen without the regulators’ approval. “The procurement by distribution utilities of electricity is affected by international fuel prices and exchange rate fluctuations. The procurement by distri-
bution utilities [DUs] of electricity supply is heavily regulated by the government,” Valles said. Valles said the Department of Energy (DOE) and ERC established competitive public guidelines with which all DUs must comply. These guidelines ensure equal opportunities for all eligible power generation firms, regardless of affiliation, and mandate that supply contracts be awarded to those that offer the lowest prices. “During the regulatory proceedings and public hearings, the ERC determines whether such contract complies with the distribution utilities mandate under the EPIA
to provide customers with the least-cost supply. All the power supply agreements of Meralco were approved by the ERC, a testament to its compliance with the least-cost mandate under the law,” said Valles. He said Meralco’s distribution rates have declined by 18 percent since 2014. The distribution component of an electricity bill goes directly to Meralco. “Customers are paying less today for the distribution-related charges of Meralco compared to more than a decade ago. Meanwhile, prices of basic commodities like food See “Bill,” A2
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Friday, July 24, 2026 Vol. 21 No. 283
DIPLOMACY IN MOTION US Secretary of State Marco Rubio waves as he departs Ninoy
Aquino International Airport in Manila on Thursday, July 23, 2026, after attending the Association of Southeast Asian Nations (Asean) Foreign Ministers’ Meeting, where he held talks with regional counterparts on the wars in Ukraine and the Middle East, tensions in the South China Sea, and broader Indo-Pacific security issues. In a separate event, Asean Chair and Philippine Foreign Affairs Secretary Ma. Theresa P. Lazaro joins fellow foreign ministers for the traditional family photo during the ministerial meeting in Pasay City. Rubio said the United States remains committed to pursuing diplomatic efforts to help end the war in Ukraine while reaffirming Washington’s support for its allies and partners in the region. BRENDAN SMIALOWSKI/AARON FAVILA/POOL PHOTO VIA AP
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By Reine Juvierre S. Alberto @reine_alberto
HE national government ran a P786.8-billion fiscal deficit in the first half of the year, slightly lower than the target, although fiscal space is becoming “increasingly constrained.” The budget hole widened by 2.79 percent to P786.8 billion from January to June, from P765.5 billion in the same period a year ago, the Bureau of the Treasury reported on Thursday. Revenue collections reached P2.388 trillion in the first half, while spending on infrastructure, food security and support for local governments pushed expenditures to P3.175 trillion.
Treasury data showed that revenue collections went up by 5.67 percent year-on-year from P2.260 trillion, though 0.01 percent below the P2.389 trillion mid-year target. Tax revenues rose by 5.38 percent to P2.142 trillion from P2.032 trillion last year. However, this fell short of the P2.158 trillion program by 0.77 percent, or P16.6 billion. This came after the Bureau of See “P786.8B,” A2
BLUE ECONOMY GREW 5% TO P1.08T IN ‘25, PSA REPORTS
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HE country’s ocean economy grew to P1.08 trillion last year, the Philippine Statistics Authority (PSA) said on Thursday. The Philippine Ocean Economy Satellite Account, which is released annually, showed that the blue economy expanded by 5.3 percent in 2025 from P1.02 trillion recorded a year earlier. The latest figure was also equivalent to 3.8 percent of the country’s total gross domestic product (GDP) at current prices. According to the statistics agency, marine safety, surveillance, and resource management saw the highest expansion last year at 31.7 percent. This was followed by marine insurance at 29.6 percent and sea-based transportation and storage at 10.8 percent. In terms of share, the PSA said ocean fishing contributed the largest portion of the ocean
economy last year at 24.1 percent, followed by the manufacture of ocean-based products at 21.3 percent, sea-based transportation and storage at 16.3 percent, and coastal accommodation and food and beverage service activities at 12.1 percent. On the other hand, employment in the ocean economy reached 2.46 million in 2025, equivalent to 5 percent of the country’s total workforce. This was also 3.4 percent higher than the 2.38 million employed individuals recorded a year earlier. By component, the PSA said the ocean fishing sector employed the largest number of workers, accounting for 37.8 percent of total ocean economy employment. This was followed by sea-based transportation and storage at 23.6 percent and coastal accommodation and food and beverage service activities at 21.7 percent. Justine Xyrah Garcia
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‘Economic recovery not likely for rest of the year’ By Justine Xyrah Garcia
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ESPITE the government’s expectation of stronger growth in the second half, a University of Asia and the Pacific (UA&P) economist said the Philippine economy is unlikely to stage a meaningful recovery in the remaining months of 2026. “We’re naturally optimistic at the university, but over the next five and a half months, there won’t be any recovery. If the economy grows by 3 percent, we’d already be very happy with that,” UA&P economist Ronilo M. Balbieran said in an interview on Thursday. Should the economy grow by around 3 percent, it would fall below the Development Budget Coordination Committee (DBCC)’s recalibrated gross domestic product (GDP) growth target of 3.5 to 4.5 percent this year. It would likewise mark the fourth consecutive year that the Marcos administration has failed to meet
its growth target. According to Balbieran, one of the biggest risks to growth is the government’s continued underspending on infrastructure, which has limited the public sector’s ability to generate jobs and incomes at a time when households and businesses are grappling with rising costs. Citing official data from the Department of Budget and Management (DBM), he pointed out that the government’s infrastructure spending has contracted more sharply than during the pandemic. He noted that infrastructure spending fell by over 40 in the first four months of 2026, steeper than the 26 percent contraction recorded during the pandemic. DBM data showed infrastructure and other capital outlays declined to P189.3 billion in January to April from P347.6 billion in the same period last year. Balbieran said that increasing public investment remains the See “Recovery,” A2
PESO EXCHANGE RATES n US 61.7480 n JAPAN 0.3786 n UK 82.6003 n HK 7.8753 n CHINA 9.1141 n SINGAPORE 47.8519 n AUSTRALIA 43.1680 n EU 70.4853 n KOREA 0.0418 n SAUDI ARABIA 16.4495 Source: BSP (July 23, 2026)