SENATE President Sherwin Gatchalian urged the Energy Regulatory Commission (ERC) anew to audit fuel pass-through charges, noting that the latest spike in pump prices could further increase the cost of electricity in the country, which is among the highest in Southeast Asia.
Gatchalian said the ERC must determine whether fuel costs being passed on to consumers by power generators and distribution utilities are justified, reasonable, and based on actual market and purchase prices.
“Rising fuel prices can translate into higher generation charges and, ultimately, higher electricity bills,” Gatchalian said, stressing the need for greater transparency and accountability in the power sector.
He earlier filed Proposed Senate Resolution 581 seeking an inquiry into the absence of regular fuel-cost audits, saying closer scrutiny is needed to ensure electricity is supplied at the least possible cost.
This comes as the Philippines recorded the highest average residential electricity rate in Southeast Asia in June at P12.43 per kilowatt-hour (kWh), slightly higher than Singapore’s P12.34 per kWh, according to the Department of Energy.
Gatchalian noted that generation charges account for about 60 percent of an electricity bill, making fuel costs a major component of what consumers ultimately pay.
In the case of Manila Electric Co., fuel from its contracted liquefied natural gas and coal supplies accounted for 86.16 percent of its total generation charges in July 2026, he said.
He said that a household consuming 200 kWh monthly saw its electricity bill rise from about P2,350, or P11.74 per kWh, in January 2025 to P2,970, or P14.83 per kWh, in July 2026 — an increase of about P620 despite unchanged consumption.
