Meralco explains power bill charges amid backlash

Manila Electric Co. said Monday that itemized charges in monthly electricity bills, including senior citizen and lifeline rate subsidies, are reviewed and approved by regulators before they are implemented.

Meralco issued the clarification after social media claims questioned alleged “additional” charges in electricity bills, saying the contested items are government-mandated pass-through costs and not revenues for the utility.

“Meralco, just like other electricity distributors across the country, operates under strict regulatory oversight that ensures all charges are lawful, transparent, and properly vetted,” Meralco Vice President and Corporate Communications head Joe Zaldarriaga said in an emailed statement.

“Every line item in your electricity bill has been approved before it is reflected and implemented,” he added.

Zaldarriaga said Meralco presents the components of electricity bills in a transparent manner so customers can see how charges are allocated.

“The electricity bills detail components and charges in a transparent manner,” Zaldarriaga said.

The company said the questioned charges are standard billing components used by distribution utilities and electric cooperatives nationwide.

“These charges include mandated cross subsidies including taxes, which are remitted to the government through the relevant agencies. In addition, these are implemented by all distribution utilities and electric cooperatives and are not unique to Meralco,” Zaldarriaga said.

Meralco said some bill components support government programs for low-income and vulnerable consumers, while others fund renewable energy initiatives such as solar and wind projects to help the country shift to cleaner power.

Among the pass-through items cited were the Senior Citizens discount, the Lifeline Rate discount for Pantawid Pamilyang Pilipino Program, or 4Ps, beneficiaries, the Feed-in Tariff Allowance and the Green Energy Auction Allowance.

“I wish to clarify that these are not company-imposed fees but are mandated to support vulnerable sectors and accelerate the country’s transition to cleaner energy,” Zaldarriaga added.

Meralco earlier explained that 55% of electricity costs goes to generation charges, which cover the cost of power bought from suppliers.

The company said 17.5% of the bill goes to distribution costs for operations and maintenance, while 11.7% covers taxes, 10.1% goes to transmission charges and 5.7% covers other charges.

The power distributor earlier raised rates by PHP 0.53 per kilowatt-hour for April 2026, resulting in an increase of about PHP 106 in the monthly bill of a typical household consuming 200 kWh.

Meralco also said it complies with regulatory directives on refunds, which are reflected in billing statements and implemented based on timelines approved by regulators.

The Energy Regulatory Commission earlier ordered Meralco to accelerate the refund of PHP 14.17 billion to customers, directing the remaining balance to be returned at PHP 0.2511 per kilowatt-hour over the next 12 months.

The refund will appear as an AWAT (Refund)/Collect line item in electricity bills, with the regulator saying the move is intended to provide more immediate relief to consumers.

Meralco constructs, operates and maintains electric distribution systems in Bulacan, Cavite, Metro Manila and Rizal, as well as parts of Batangas, Laguna, Pampanga and Quezon.

The company urged customers with questions about their bills to use its customer service channels for clarification and assistance.