More customers complain about questionable electric bills

Several groups and households continue to raise concerns against the Manila Electric Company (MERALCO) over bill charges they say are unrelated to actual electricity consumption.

In Maki Pulido’s report on “24 Oras” on Tuesday, Ria Marie Villa said she has been carefully saving on electricity, but her efforts were in vain as she was still billed over P2,000 for her March consumption.

“Sometimes you just have to ask yourself: Why is it like this? You try so hard to save, but it feels like it didn’t even make a difference,” she lamented.

The back of the electric bill shows charges for actual electricity usage, but the Power for People Coalition said many of the other items do not directly reflect household consumption.

Government-imposed fees such as the 12% Value Added Tax (VAT) and other taxes are included in the bill. In Ria’s case, VAT amounted to P206.50, while government taxes totaled P218.86.

She also paid P49.53 in Universal Charges, a collection meant to fund rural electrification and watershed protection projects.

Her bill also included a P1.56 Lifeline Subsidy charge, which supports 4Ps beneficiaries and other qualified marginalized consumers.

MERALCO likewise imposes a Systems Loss charge, which covers electricity lost through technical transmission losses and pilferage. For Ria, this added P114.82 to her bill.

“That shouldn’t be shouldered by consumers. Those costs should be absorbed by the businesses involved in transmission and distribution,” said Gerry Arances of the Power for People Coalition.

The group said that if government taxes were suspended, universal charges and lifeline subsidies were shouldered by the state, and MERALCO absorbed system losses, Ria’s bill could be reduced by nearly 30 percent, or about P591.27.

The estimate is based on her monthly consumption of 154 kilowatt-hours. The group noted that these additional charges increase as electricity consumption rises.

GMA News has reached out to the Department of Finance for comment on the proposal and its possible impact on government revenues.

“There must be an equitable sharing of the crisis. We cannot allow the burden to be carried solely by hardworking ordinary citizens,” Arances said.

MERALCO, however, maintained that all charges in its bills are approved by the Energy Regulatory Commission (ERC).

“Meralco reiterates that all components of electricity bills are approved by the regulator and are based on orders and rules of the ERC. Allegations of overcharging have never been substantiated, and the company’s distribution tariff has not increased over the past 10 years,” said MERALCO spokesperson Joe Zaldarriaga.

“Even so, Meralco’s rates continue to undergo rigorous review and confirmation to ensure these remain fair and reasonable,” he added.

The generation charge remains the largest component of the bill, accounting for more than half of the total amount.

Most of MERALCO’s supply comes from plants using imported coal and liquefied natural gas (LNG), which have seen price increases following global fuel market pressures, including tensions in the Middle East.

These are pass-through charges, meaning costs incurred by generation companies are directly passed on to consumers.

The Power for People Coalition said MERALCO should instead prioritize contracting cheaper sources of energy, particularly renewables.

“Since Meralco is the one entering into these contracts, it must ensure—as mandated by law—that consumers are protected,” Arances said.

Energy expert Atty. Jose Layug said renewable energy such as solar power can cost around P4.86 per kilowatt-hour, significantly lower than coal at P6.20 and LNG at P8.84 per kilowatt-hour.

Based on the coalition’s estimates, shifting to renewable energy sources could reduce Ria’s bill by an additional P440.44.

“This is why we have been advocating for renewables. Renewable energy costs are fixed because they don’t require fuel, so consumers are not exposed to fuel price fluctuations,” Layug said.

MERALCO, however, said its sourcing strategy follows the Competitive Selection Process (CSP).

“On power supply, Meralco’s sourcing strategy is anchored on the competitive sourcing process, which ensures supply is procured in a transparent manner and follows the least-cost principle,” Zaldarriaga said.

Another component of the bill is the transmission charge collected by the National Grid Corporation of the Philippines (NGCP), which covers the cost of delivering electricity from power plants to distribution utilities like MERALCO. This charge has also increased recently.

The Power for People Coalition said higher transmission costs are partly due to NGCP’s reliance on ancillary services or reserve power sourced from diesel, bunker fuel, and coal-fired plants.

This added about P77 to Ria’s bill.

“These plants are just on standby as reserves, but the sources are really problematic. Why prefer those instead of renewables?” Arances said.

GMA News has also sought comment from NGCP.

If these deductions were applied, Ria’s MERALCO bill would drop to P1,059.29 from P2,168.50.

The bill also includes the Feed-in Tariff Allowance (FiT-All) and Green Energy Auction Allowance (GEA-All), which serve as incentives for renewable energy investors. Other charges listed may also be used for bill deposit adjustments.

The Energy Regulatory Commission (ERC) said these charges are implemented in accordance with existing laws.

“The ERC diligently implements the laws enacted by Congress and the policies issued by the government,” the agency said.—Vince Angelo Ferreras/MCG, GMA News