The Manila Electric Company (Meralco) has voiced its support for government initiatives to lower electricity rates, reiterating its dedication to easing the financial burden on consumers while maintaining a reliable power supply.
The utility firm released the statement after Akbayan Party-list Representative Chel Diokno renewed calls for a congressional investigation into power rates following public concern over escalating electricity bills.
Joe Zaldarriaga, Meralco Vice President and Head of Corporate Communications, stated that the company regularly collaborates with energy officials and regulators to find ways to curb rate hikes.
“We have always been very proactive in seeking ways to ease the burden on all power consumers and implement initiatives that mitigate increases in rates, under the leadership of DOE and guidance of the ERC,” Zaldarriaga said.
The Reality of Subsidies and Unbundled Billing
Zaldarriaga pointed out that local power prices mirror the genuine cost of generating and supplying electricity, highlighting that Philippine power rates lack the government subsidies present in nearby nations.
“We would like to reiterate that electricity rates in the Philippines, not just Meralco’s, reflect the true cost of power as these do not have government subsidies, unlike those in our neighboring countries,” Zaldarriaga said.
To maintain transparency, the distributor ensures that every power bill features an itemized breakdown of expenses to illustrate exactly where customer payments are directed.
“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 which are pass-through costs,” he added.
Distribution Rates and Collaboration
The communications chief explained that generation costs—which fluctuate based on market conditions, fuel prices, supply availability, and foreign exchange rates—make up the bulk of consumer bills.
Meanwhile, Meralco’s distribution charge accounts for only around 12 percent of the total bill and has not increased in over 15 years.
“Inspite of this, Meralco continued its investments in system modernization, reliability improvements, digitalization, and customer service enhancements,” he added.
Zaldarriaga emphasized that Meralco welcomes the opportunity to collaborate with legislators, regulators, and industry stakeholders to develop fair policies that protect consumers and safeguard the energy market.
“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,” he said.
We support long-term solutions that prioritize energy security and continued delivery of safe, reliable and stable electricity service for the benefit of the consumers,” he added.