THE Manila Electric Co. (Meralco) said on Saturday it is continuing to find ways to keep electricity rates low and ease the burden on power consumers.
“Meralco strongly supports the government and the energy industry’s efforts to explore sustainable measures to lower electricity rates. We have always been very proactive in seeking ways to ease the burden on all power consumers and implement initiatives that mitigate rate increases, under the leadership of [the Department of Energy] and guidance of the [Energy Regulatory Commission],” the power utility said in a statement by its vice president and head of corporate communications, Joe Zaldarriaga.
Meralco’s statement followed the call of opposition party-list Akbayan on Friday to investigate the power utility over “various and often opaque charges.”
“We would like to reiterate that electricity rates in the Philippines, not just Meralco’s, reflect the true cost of power, as these lack government subsidies, unlike those in our neighboring countries. The majority of the costs go to generation charges, affected by market forces, fuel prices, actual supply conditions and foreign exchange movements,” the power utility’s statement added.
“Meralco remains fully committed to transparency. Customer bills are unbundled to clearly show where every peso goes — from generation, transmission and system loss charges, to taxes and other government-mandated charges. Most of these are pass-through costs,” it added.
The power utility also cited that its own distribution charges account for only 12 percent of the customer’s bill and that the distribution rate has not increased for over 15 years, despite the “year-on-year increase in the cost of basic goods and commodities brought about by yearly inflation and continued weakening of the peso against the US dollar.”
“Meralco remains open to constructive discussions and is willing to work with government, regulators, lawmakers and stakeholders on measures that are fair, transparent and supported by appropriate laws and regulatory mechanisms. We support long-term solutions that prioritize energy security and the continued delivery of safe, reliable and stable electricity service for the benefit of the consumer,” the power utility said.
In a press briefing on Friday, Akbayan Rep. Chel Diokno, along with labor and renewable energy advocates, called on Congress to investigate Meralco amid growing public frustration over “persistently high” electricity bills. Diokno said Congress must act not only to protect consumers, but to “maximize the relatively positive public trust and approval it currently enjoys by translating confidence into concrete relief for households” that have been “burdened” by rising costs of living.
“Congress has an extraordinary opportunity right now. For the first time in a long while, public confidence in the institution appears to be rising. We should not let this opportunity go to waste. I hope my fellow lawmakers will reciprocate this trust with swift action and meaningful solutions. Congress needs to respond to the people’s economic concerns. Working families should not be left confused or overwhelmed by electricity bills they cannot fully understand or verify,” Diokno said in a mix of Filipino and English.
He, together with fellow Akbayan Representatives Percival Cendaña and Dadah Kiram Ismula, and Dinagat Islands Rep. Kaka Bag-ao filed House Resolution 995. This resolution called on the House Committee on Energy to “investigate the range of pass-through and subsidy-related charges embedded in electricity bills,” which includes generation, transmission, system loss, universal charges, lifeline subsidies, FIT-All, GEA-All, missionary electrification charges, and taxes and fees authorized under existing energy and social welfare laws, including the Electric Power Industry Reform Act and the Renewable Energy Act.
”This is about easing the burden on households and addressing a fundamental cost-of-living pressure... If these charges are legitimate, they must be clearly and intelligibly explained. If they are excessive or poorly designed, Congress has the duty to correct them. Electricity is not a luxury — it is a basic necessity, and our people deserve clarity, fairness and accountability,” Diokno said.
In addition, the party-list echoed Sen. Risa Hontiveros’ proposal to remove the value-added tax on system loss charges imposed by power utilities.
“We are asked not only to pay for the system loss that we did not benefit from, but we also shoulder the taxes that come with it. It’s time to end this unjust policy,” Diokno said.
