Friday, April 26, 2013

MERALCO POP Rates Program

Guys, hubby and I just discovered that Meralco has an ongoing program wherein you could save on your electricity bills. It is called Meralco's Peak/Off-Peak (POP) rates program. Unfortunately, we are not qualified for the said program because our average monthly electricity consumption is less than 500 kWh. Baka kayo you are qualified that's why I'm sharing this to you.

Here are the details of the program for residential consumers which I got from Meralco's website (


Meralco's Peak/Off-Peak (POP) rates program (formerly known as "Time of Use" or "TOU) is an alternative energy pricing scheme that is based on the time of day electricity is generated and on the cost of supplying electricity during that time. With this pricing scheme, Meralco customers can avail of lower generation costs in their total electricity rate during pre-defined off-peak hours:

                                               PEAK                            OFF-PEAK
Monday to Saturday     8am to 9pm (13 hours)        9pm to 8am (11 hours)
Sunday                        6pm to 8pm (2 hours)         8pm to 6pm (22 hours)

Compared to standard rates, the POP program more accurately reflects the cost of electricity generation during specific time periods.

I. Overview


Approved by the Energy Regulatory Commission (ERC), the Meralco POP (Peak-Off-Peak) rate program is an energy-pricing scheme which offers two power rates, computed based on the time of day electricity is produced and the corresponding generation cost during that time.

What do Peak and Off-Peak periods mean?

Peak periods are hours of the day when the demand for electricity is high. Energy prices during peak periods are substantially higher than the charges during off-peak periods. This is because more power plants, including those running on expensive fuels, are needed to run during the peak hours to supply and meet the demand for electricity. During off-peak or low demand, only plants runing at low operating costs supply the electricity.

II. Mechanics

What are the POP Rates?

Airlines and hotels offer cheaper rates during off-season or periods of low demand for travel. Telecommunication firms extend to its subscribers lower rates at nights. The Meralco POP program is a similar scheme that specifies different pricing depending on the time of day, day of the week and season of the year.

Meralco's POP pricing consists of:

1) Two time periods
    a) Peak
        Monday to Saturday 8a.m. to 9p.m. (13 hours)
        Sunday 6p.m. to 8p.m. (2 hours)
    b) Off Peak
        Monday to Saturday 9p.m. to 8a.m. (11 hours)
        Sunday 8p.m. to 6p.m. (22 hours)

2) Two Seasons
    a) Dry/summer (January to June)
    b) Wet/rainy (July to December)

                                                             PEAK            OFF-PEAK
                                                         (Php/kWh)          (Php/kWh)
DRY                POP rate                         7.48                   3.55
                    Non-POP rate                     5.69                   5.69
                       Difference                       1.79                  -2.14

WET               POP rate                         7.28                   3.55
                    Non-POP rate                     5.57                  5.57
                       Difference                       1.71                  -2.02        
                  *With approval from ERC

Under the POP program, the peak rate will be Php1.80/kWh more expensive than Meralco's default non-POP rate, but to encourage customers to consume electricity during off-peak hours, the off peak rate will be lover than the non-POP rate by P2.14/kWh.

What's the difference between the old TOU (Time-of-Use) program and this new POP pricing scheme?

The Off-Peak rate under the new pricing scheme is even lower than the Off-Peak rate in the previous TOU program.

                                                              TOU                 POP
                                                         (Php/kWh)          (Php/kWh)
DRY               Peak                                7.25                    7.48
                       Off-Peak                          3.86                    3.55
                       Difference                        3.39                    3.94

WET               Peak                                6.95                   7.28
                       Off-Peak                          3.94                   3.55
                       Difference                        3.01                   3.73

Note: The above rates include the generation cost adjustment (CGA). Meralco's POP rates consist of the basic generation rate plus (or minus) the generation charge adjustment (GCA) for the month. The GCA will adjust the basic generation rate for fluctuations in generation cost as well as other rate adjustments as approved by the ERC.

III. Benefits


Customers can take advantage of using applicances with high power demand during off-peak periods since they will be charged with lower electricity rates.

The POP program is most beneficial to those who:
   a) Normally use their electrical appliances during off-peak hours (e.g. use of air-conditioners,
       water heaters, clothes dryers at night or early morning)
   b) Can shift a considerable amount of their high electricity usage from peak to off-peak periods.
   c) Can reschedule power-intensive tasks to off-peak periods like Sunday (e.g. operating washing
       machines, clothes dryers and vacuum cleaners)

This would result in savings which could be used for other household expenses.

What are the power-intensive appliances to watch out for? These typically include:
   a) Air-conditioners
   b) Flat irons
   c) Clothes dryers
   d) Washing machines
   e) Vacuum cleaners
   f) Water heater

IV. Requirements

How would I know if I'm qualified to apply for POP?

   a) Residential accounts with a 12-month average consumption of at least 500 kWh.
   b) No pending service irregularity or violation of contract cases
   c) No overdue accounts

How do I apply?

   a) Inquire at the nearest Meralco Business Centers
   b) Call the POP Helpline (632-8008)

What are the POP application requirements?

Qualified customers must submit a signed POP application form.

What are the corresponding fees?

   a) Upon application to the program, enrollees must pay a one-time application fee
   b) Monthly incremental costs:

     1. Metering charge, which refers to the cost of reading, operation and maintaining power
         metering facilities and associated costs attributed to the provision of metering service
     2. Supply charge, which refers to the cost of rendering service to customers such as billing,
         collection, customer assistance and other associated services.

                  One-Time Application Fee                    Additional Monthly Charges
                      P999.00 + 12% VAT                           POP Metering Charge
                                                                                           P 0.66
                                                                                 POP Supply Charge
                                                                                 P 0.01/kWh + P1.94

Note: One-time application fee includes cost of installation of a POP cable meter. Unlike the existing meters, POP-capable meters have a computerized clock that is able to keep track of the energy consumed during different times of the day. This will be the basis for the peak and off-peak consumption where the special POP rates will be applied.

Does the program have a lock-in period?

Customers are required to enroll in the POP program for a minimum of 12 months, which will also serve as the lock-in period.

If the customer wants to leave the program prior to the end of the 12 month contract, the following should be submitted:

   a) Formal letter to Meralco stating their intent to discontinue their enrollment with POP
   b) Payment of a pre-termination fee equivalent to the remaining portion of the incremental  
       metering charge and additional costs associated with their POP enrollment

What if I am currently enrolled in the Meralco TOU program?

The POP program is the new Meralco TOU rates program but with lower rates. In effect, existing Meralco TOU customers do not need to re-apply for a new contract (or terminate their existing contract) to enjoy the new POP rates, based on the current contract's provision that allows them to be billed on whatever POP rates are approved by the ERC for the duration of their contract period.

For non-residential consumers, you may click here for more information.


  1. Anonymous12:33 AM

    This post is really great and ang problema ko lang dito ay may babayaran pa na sort of registration fee. well you will have to explain this to me in person when i see you.

    What i really want to be implemented dito sa pilipinas ay ang fixed rate monthly. I learned this from my tita when she got home i was curious enough to ask kase nga naman sa States they use heater and air conditioning at isipin mo ah centralized and heating at air conditioning sa states ganun din kay rap i assume. So this is what I hope we'll have here sa Pilipinas:

    Sa US(Illinois to be exact)
    fixed rate ang babayaran mo you will only have to choose a plan or package wherein you will pay a fixed amount average of your year's consumption in that way pag heatstroke months meaning summer kahit gumamit ka ng gumamit ng aircon same pa din at kung malamig naman kahit less ka gumamit ng aircon or naka low naman ref mo steady pa din babayaran mo sa electricity. in that way mas madali maibudget ang monthly expenses ng bawat household.

    Another option is China's prepaid electricity:
    I was not able to experience it myself but according sa parents ko it is similar to buying a phone card, tapos iloload mo or insert mo ito sa metro ng kuryente mo then pagmalapit na maubos umiilaw na yung metro maganda ito kase mamomonitor mo yung consumption mo, the down side nga lang ay pano kung maubos ang load ng kuryente at wala ka ng pera? ngayon kailangan mong maging responsable sa pag gamit ng kuryente at wag maging pabaya o makakalimutin sa tao na maiiwan sa bahay nyo habang ikaw ay nagtatrabaho.

    Ito naman ay mga suggestion lang dahil ayaw ko nga magbayad ng registration fee ng peak off peak ng meralco =P mve

  2. Anonymous12:18 PM

    All of the pricing schemes provided by the electric distributor (i.e. MERALCO) have advantages/disadvantages.

    1. Fixed Rate:
    Description: Fixed charges all throughout the bill period
    Advantage: Regardless of the amount of your consumption, you will be charged at a fix rate.
    Disadvantage: That fixed rate will likely be more expensive compared to the other pricing schemes since the electricity distributor will equally distribute the cost of producing the electricity

    2. Peak/Off-Peak Rate
    Description: Time varying rates depends on when you consume electricity (higher during peak hours and lower during off-peak).
    Advantage: you can reduce your electricity bill by using more during off-peak (cheaper rate)
    Disadvantage: Difficult to shift your electricity consumption during off-peak.

    3. Prepaid electricity:
    Description: You have pre-loaded amount of electricity on your prepaid meters
    Advantage: have the flexibility to manage your electricity (i.e. don't load when your on a vacation)
    Disadvantage: Discomfort when you forgot to load up.

    To sum up, the best way to save cost of electricity is to invest in high efficient appliances (i.e. shifitng incandescent bulbs to CFLs or LEDs) and management of yor consumption behaviour.

  3. If within the year my monthly consumption drops down below 500KWH,will my program be terminated and put back to its original plan? Example if we had an out of town trip for a week or two.