The Manila Electric Company (Meralco) on Monday pushed back against proposals to mandate utility-shouldered subsidies, asserting that discounts should remain voluntary to avoid destabilizing the regulatory environment.
The utility firm’s statement follows a proposal from Akbayan Party-list Representative Chel Diokno, who urged electric distribution utilities to absorb “pass-through” costs—specifically the lifeline rate subsidies for marginalized consumers—rather than passing them on to other bill-paying customers.
Diokno argued that this should be part of the companies’ social responsibility given the rising number of complaints over high electricity rates.
However, during a financial briefing in Pasig City, Meralco Senior Vice President and Head of Regulatory Affairs Ronald Valles warned that such a move would set a dangerous precedent.
“Historically, ang mga mandated subsidies, ibig sabihin, inuutos ng gobyerno, ang purpose nyan para kolektahin sa mga ibang customers,” Valles explained.
“Ang discount kasi that Meralco can give or distribution utilities can provide, dapat voluntary diba? Otherwise it becomes a bad precedent na lahat na lang ng pwedeng maisip na charges na pwedeng i-discount, ipapa-absorb sa distribution utilities. Then it can be a very inefficient way of regulating utilities.”
Valles further noted that Meralco already facilitates various “Customer Choice Programs,” including the Green Energy Option Program, designed to provide consumers with more control over their energy costs.
He emphasized that these initiatives assist those in need without disrupting the standard utility model.
“Meralco implements naman many other Customer Choice Programs para makatulong mapababa ang presyo ng kuryente sa mga nangangailangan. But not in the form of subsidies, just like any other utility,” he added.
The debate over who should fund electricity discounts has intensified as summer demand and a weakening peso drive rates upward.
Other political figures, including Senator Bam Aquino and former Bayan Muna Party-list Representative Neri Colmenares, have recently suggested that instead of being added to consumer bills, lifeline and senior citizen discounts should be covered by the national budget to provide genuine relief to the public.