How high electricity costs are pushing tourists, retirees, and Fil-Ams away from the Philippines—while Meralco climbs global rankings -OP-ED by PH MAG Online
The Philippines sells paradise: beaches, culture, family, and that island-life ease. But in 2025, there’s a not-so-hidden surcharge on paradise—your power bill.
Residential electricity under Meralco rose again in August, bringing the typical household rate to ₱13.2703 per kWh. That’s a fresh increase of ₱0.6268 in a single month. For visitors, retirees, and Fil-Am families on fixed budgets, that number isn’t abstract; it’s the difference between “we’re moving” and “maybe not.”
Meanwhile, Thailand—the Philippines’ chief rival for long-stay tourism and retirement—spent 2025 cutting power prices. Regulators reset the residential tariff to around 3.98 baht per kWh (May–Aug 2025) and signaled further trims toward ~3.95 baht for late 2025. That headline number shows up on rental listings, expat forums, and corporate spreadsheets. It matters. Recent dismissed US Embassy, Manila, US AID members, expressed how they chose nearby Thailand specifically due to ‘electricity’ costs and ‘brownouts’ amongst other things.
In the United States, where many Fil-Ams benchmark costs, average residential prices reached 17.47¢/kWh (May 2025)—also rising—but with far higher average household incomes and more predictable service. (Analysts tie a chunk of the U.S. increase to surging data-center demand for AI.)
Vanishing from the “best places to retire” lists
A symbolic gut-check came last year when Forbes dropped the Philippines from its “Best Places to Retire Abroad” list, citing climate and hazard risks among the reasons. Thailand stayed in the conversation; the Philippines didn’t. For relocation-minded seniors, lists like these are gatekeepers.
…while Meralco climbs a different Forbes list
At the same time, Meralco showed up on Forbes’ Global 2000 (2025)—a marker that investors see a solid, scaled, tech-enabled utility. That’s good for capital markets and grid modernization—but it sharpens the core question: Where’s the balance between corporate success and household survivability?
Why the bill bites so hard
Independent and regional analysts have repeatedly flagged the Philippines as having one of Southeast Asia’s highest power tariffs—typically second only to Singapore.
The reasons: heavy imported-fuel exposure, market design, and pass-through costs. Even as wholesale/spot prices softened in mid-2025 thanks to more renewables and LNG, retail tariffs remained elevated. In other words, consumers aren’t feeling the relief yet.
The human fallout: disconnections, “elevated” meters, and fixed incomes
As bills climb, service cutoffs and meter handling have become a flashpoint. Meralco’s own terms warn that partial payments can still trigger disconnection; the Supreme Court has had to reiterate that utilities must give at least 48 hours’ written notice before cutting power. Meralco is also expanding smart-meter deployment (and contracting disconnection/reconnection services, including at Elevated Metering Centers) to tighten operations and reduce losses. For a small shop or a retiree budgeting to the peso, that “operational efficiency” can feel like the system squeezing back.
Why this scares tourism, retirement, and outsourcing
- Tourism & long-stays: Monthly electric budgets are now a line-item in villa searches. When Thailand advertises ~3.98 THB/kWh while Manila headlines read ₱13.27/kWh, long-stay visitors do the math and drift east.
- Retirement & Fil-Am relocation: Fixed incomes hate volatility. The idea of notice-of-disconnection letters showing up mid-month is a non-starter for many seniors.
- BPO & enterprise: Power is a core input. Even if firms can negotiate supply, high distribution tariffs and uncertainty signal risk—especially versus Thailand, which is actively cutting rates to attract data centers and industry.
What “balance” could look like (fast, credible fixes)
- Make retail track wholesale faster. Spot prices have eased; let bills reflect it with transparent, time-bound pass-throughs and more open contracting. (Market operator data shows spot declines in 2025.)
- Protect the vulnerable from shutoffs. Enforce the High Court’s 48-hour notice rule; expand installment plans; guarantee a lifeline kWh block that cannot be disconnected in heat emergencies.
- Accelerate rooftop and community solar with interconnection SLAs and standardized net-billing so households and SMEs can actually self-help. (Analysts note PH pays among SEA’s highest rates, yet solar potential is strong.)
- Speed the clean build-out that’s already lowering spot prices. Keep adding firm renewables + storage, lean on LNG as a bridge (not a crutch), and publish a quarterly “retail vs. spot” gap tracker.
- Tourism & retiree assurance. A simple “Power Cost & Reliability Dashboard” for Metro Manila and top islands (Boracay, Cebu, Palawan) would give long-stayers confidence that the lights—and AC—stay on, at a price they can predict.
Bottom line
The Philippines can’t market “affordable paradise” while power bills creep higher than its neighbors’. Thailand is literally cutting tariffs at the same time Filipino households are seeing hikes. And yes—Meralco’s growth, smart meters, and a Global-2000 nod are signs of modernization. But if modernization doesn’t translate into relief at the socket, the country will keep losing tourists, retirees, Fil-Am homecomers—and contracts—to places where the electricity math is kinder.
Quick reference: headline numbers (mid-2025)
- Philippines (Meralco): ₱13.2703/kWh (Aug 2025 typical household rate).
- Thailand: ~3.98 baht/kWh (May–Aug 2025), targeting ~3.95 for late 2025.
- United States (avg residential): 17.47¢/kWh (May 2025, national average).
