MANILA, Philippines — Senate President Sherwin Gatchalian called on the Energy Regulatory Commission (ERC) on Friday to conduct a thorough audit of fuel pass-through charges imposed by power distributors.
Gatchalian warned that a lack of regulatory oversight leaves consumers vulnerable to excessive pricing by power generation companies.
"If private companies are not monitored, they will really abuse the price. They will pass on the price they bought to the consumer," Gatchalian said.
He added that retail electricity rates for residential customers under the Manila Electric Company (Meralco) have seen a steady upward trajectory since the beginning of the year.
The January 2025 rates, the senator said, are ₱11.74 to ₱12.36 per kilowatt-hour (kWh), while the current rates are ₱14.48 to ₱15.10 per kWh.
He noted that the figures represent a significant increase in monthly household expenses across Metro Manila and nearby provinces serviced by the distribution utility.
Gatchalian said that regulatory scrutiny must extend beyond standard distribution charges to include generation rates—the cost incurred by distribution utilities to purchase power from generation companies.
He added that pass-through costs currently operate with minimal government visibility.
"The government is blind when it comes to pass-on charges, so it needs to be audited. The regulator is there to ensure that the electricity price is not passed on excessively to the consumer, especially when the increase is rapid," Gatchalian said.
ERC Chairperson Francis Saturnino Juan said during a Senate inquiry on Thursday that the regulatory body last conducted an audit on fuel pass-through charges in 2023. That audit was initiated in response to global energy market volatility triggered by the Russia-Ukraine conflict.
Juan's statement highlighted a multi-year gap in direct oversight during a period marked by fluctuating global fuel markets and rising domestic power consumption.
Consumer advocacy groups and lawmakers have echoed calls for the ERC to institutionalize regular, transparent audits to ensure that pass-through mechanisms accurately reflect true market prices rather than inflated margins.
