SEN. Sherwin Gatchalian on Tuesday urged the Energy Regulatory Commission (ERC) to mitigate the impact of rising electricity rates by staggering increases, warning that consumers could face another round of “bill shock” in the coming months.
Gatchalian issued the appeal following recent rate adjustments by Meralco, which he said were largely driven by foreign exchange fluctuations.
The senator cautioned that the spike in electricity bills does not yet reflect the full impact of global energy market pressures, particularly those linked to the oil crisis.
He said anticipated increases in the prices of coal, liquefied natural gas (LNG), and other fuel sources are likely to further drive up power generation costs.
“The oil crisis has not yet been factored into the current rates. Once these higher fuel costs take effect, we can expect further increases in electricity bills,” Gatchalian said.
The senator emphasized that the ERC has the authority to implement staggered or deferred adjustments to prevent sudden spikes in consumer bills.
He cited the agency’s actions during the Covid-19 pandemic, when rate increases were distributed over time to cushion the financial burden on households.
“We should not allow this to become a disaster for consumers. There are mechanisms to gradually ease the impact,” he said.
Gatchalian defended the so-called lifeline rate, which provides discounted electricity to low-income households.
He noted that the subsidy has been in place since the enactment of the Electric Power Industry Reform Act (Epira) in 2001, and remains minimal at around one centavo per kilowatt-hour.
The senator said the primary driver of rising electricity costs is not the subsidy but the increase in generation charges, which have climbed to about 75 centavos per kWh.
With geopolitical tensions affecting oil and gas supply chains, Gatchalian warned that without proactive regulatory intervention, consumers could face sustained increases in power costs.
He reiterated the need for timely action from regulators to balance the financial viability of power providers with the protection of consumers, especially global economic uncertainties.
