Meralco Commercial Rate per kWh: How It Differs From Residential
Running a shop, restaurant, or small business? Your electricity is billed under a different rate class than a household — here’s what that actually means for your rate.
3 classesGeneral Service A, General Service B, and General Power
≤5kWconnected load defines General Service A
>40kWconnected load moves you into General Power
You’re Not Billed the Same as a Household
Meralco doesn’t apply one flat rate to everyone. Your rate class is determined by how your electricity is used and how much capacity your connection is contracted for — not just how many kWh you consume.
Residential
A single dwelling unit used primarily as a residence, with at least one toilet, bath, and kitchen facility.
Households
General Service A (GS-A)
Small business premises with a contracted capacity of 5kW or less — think a small bakery, salon, or car wash.
≤ 5kW
General Service B (GS-B)
Businesses with a contracted capacity between 5kW and 39kW — restaurants, small commercial spaces, convenience stores.
5–39kW
General Power (GP)
Commercial and industrial customers with a connected load above 40kW — larger operations with heavier equipment.
> 40kW
Classification thresholds above match Meralco’s published Start or Modify Service FAQ — always confirm with a Business Center for your specific premises, since a mixed-use property (living quarters above a shop, for example) can be classified case by case.
Why Commercial Rates Aren’t the Same Number as Residential
The per-kWh generation, transmission, and system loss charges follow the same national market pricing everyone pays into. What differs between classes is mainly:
- Distribution charge structure — commercial accounts are billed under a different distribution rate schedule than residential accounts, since serving a business connection has different cost drivers than a household.
- Demand charges — larger commercial and General Power accounts may be billed partly on peak demand (kW), not just total consumption (kWh), which residential accounts never see.
- No Lifeline or Senior Citizen subsidy eligibility — those discounts are specific to qualifying residential accounts and don’t apply to a business connection.
Meralco publishes an official, current Schedule of Rates covering every customer class. Because generation charges move monthly for every class, always check the live schedule for your exact current commercial rate rather than relying on a fixed number — the same way residential rates change every month.
If You’re Opening or Registering a New Business Connection
Your rate class is assigned when you apply for service, based on your declared use and contracted capacity — not automatically the same as a residential application. If you’re setting up a new commercial connection, review our application requirements guide for the general documentation process, then confirm your specific class and rate with a Meralco Business Center.
Frequently Asked Questions
1. Is the commercial rate always higher than residential?+
Not necessarily uniformly higher across every charge — but the rate structure and distribution charges differ, and commercial accounts don’t get residential-only subsidies like Lifeline or Senior Citizen discounts.
2. How do I know which rate class my business falls under?+
It’s based on your contracted electrical capacity: General Service A for up to 5kW, General Service B for 5–39kW, and General Power above 40kW.
3. Do commercial accounts pay a demand charge?+
Larger commercial and General Power accounts can be billed partly on peak demand (kW), in addition to total consumption — something residential accounts don’t have.
4. Can I run a small business on a residential connection?+
A connection is classified by its declared and actual use. A dedicated commercial account is the correct setup for a registered business premises.
5. Does the generation charge differ between residential and commercial?+
The underlying generation cost comes from the same power market, but the full billed rate — including distribution and other charges — is published separately per customer class and changes monthly like residential rates do.
6. Where can I see the exact current commercial rate?+
Meralco publishes an official Schedule of Rates covering all customer classes, updated with the same monthly generation charge adjustments as residential rates.
7. Do commercial accounts have a different bill deposit?+
Yes — bill deposits are computed based on estimated average billing for the account, so a commercial connection’s deposit reflects its own expected consumption, not a residential formula.
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See how much the generation charge has moved this month before estimating your business’s bill.
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