The Manila Electric Company (Meralco) clarified on Friday that several line items appearing on consumer electricity bills are not profits for the utility, but are instead charges mandated by national law.
The statement follows a viral social media post where a customer questioned the various “other charges” reflected in her monthly statement.
Meralco Spokesperson Joe Zaldarriaga explained that these figures represent essential pass-through costs.
“These charges include mandated cross subsidies including taxes, which are remitted to the government through the relevant agencies,” Zaldarriaga stated.
He further emphasized that Meralco is not unique in this practice, noting that every electric utility provider in the Philippines is required to collect these specific amounts from their respective customer bases.
Breakdown of Mandated Charges
According to Zaldarriaga, the “other charges” category comprises various subsidies and environmental allowances, including:
- Lifeline Rate Discount: A subsidized billing rate designed to provide financial relief to qualified low-income households.
- Senior Citizen Discount: A mandated price reduction for elderly consumers.
- Feed-in Tariff Allowance (FIT-All): A uniform charge collected from all on-grid consumers to support the growth of the country’s renewable energy sector. Meralco confirmed this is remitted in its entirety to the National Transmission Corporation (TransCo).
- Green Energy Auction Allowance: A fund dedicated to financing local renewable energy initiatives, such as solar, wind, and hydroelectric projects.
The transparency of these funds has recently been a point of discussion. Consumer advocacy groups have previously urged the Energy Regulatory Commission (ERC) to provide a strict accounting of the total accumulated FIT-All funds gathered from the public.
By detailing these components, the power distributor aims to distinguish between the actual cost of electricity distribution and the statutory fees remitted directly to the government and its energy agencies.