'Bill shock’ hits power consumers amid summer surge

Consumers are reeling from higher electricity bills this April, with power distributor Manila Electric Company (Meralco) citing a rate increase and higher demand during the hot season.

According to Darlene Cay's report on "24 Oras Weekend," Hazel, a residential customer, said she was surprised after receiving a bill of P7,013—significantly higher than her previous P5,560—even though she believed her consumption was similar to last year.

“Alam ko naman na nagdagdag ako ng oras sa aircon, so expected na rin po ’yun. Pero mas mataas talaga siya, unlike last year,” she said.

(I know I increased my aircon usage, so an increase was expected. But it’s really higher compared to last year.)

Similar complaints have surfaced online, with netizens posting about “bill shock” over sudden spikes in electricity charges.

One consumer, Ivy Ocon, said additional charges in her bill reached over P4,000, with nearly P1,000 attributed to taxes.

Meralco earlier announced an increase of 53 centavos per kilowatt-hour for April.

According to Joe Zaldarriaga, head of Meralco corporate communications, the hike was driven by higher generation charges, partly due to the weakening peso against the US dollar.

He added that the impact of the ongoing oil crisis linked to tensions in the Middle East has yet to be fully reflected in electricity rates.

“Tumaas ’yung presyo ng gas plant. So ito ang pinagkukunan natin ng supply. Nag-reflect sila ng increase kasi bumaba rin ’yung pera natin kumpara sa benchmark na US dollar,” Zaldarriaga said.

(The price of gas plants went up. That’s where we source our supply. They reflected an increase because our currency also weakened compared to the benchmark US dollar.)

The company also noted that electricity consumption typically rises during the summer months, contributing to higher bills.

Meralco said the bulk of electricity costs:

• About 55% comes from generation charges or the cost of power purchased from suppliers;
• 10.1% goes to transmission charge;
• 17.5% goes to distribution costs covering operations and maintenance; 
• 11.7% goes to  taxes
• 5.7% attributed to "other charges."

The utility also clarified that pass-through charges and subsidies, including those for senior citizens and beneficiaries of the Pantawid Pamilyang Pilipino Program (4Ps), are set and collected by the government.

“Ang lifeline rate ay ang subsidy na binibigay sa mga 4Ps… at ’yung mga nakapagpakita ng local social welfare development office certification,” Zaldarriaga said, referring to assistance under Republic Act 11552 or the Expanded Lifeline Rate Law.

(The lifeline rate is the subsidy given to 4Ps beneficiaries… and to those who can present certification from the local social welfare and development office.)

Meralco said it has yet to determine whether power rates will change in May, but noted that a 23-centavo refund for residential customers may help offset costs.

The refund stems from the remaining P14 billion, now set to be returned over 12 months instead of 36.

The company also expressed hope that tax exemptions for gas plants—considered indigenous energy sources—will be fully implemented, which could help lower electricity costs.—MCG, GMA News