Charges appearing on electricity bills that benefit low-income households are not discretionary — they are legally required, the Manila Electric Co. said as it pushed back against public criticism over high power costs.
Spokesman Joe Zaldarriaga pointed out that the company functions only as a collection conduit for these fees, with none of the amounts counted as company income. “We act solely as collection agents for these costs. These do not form part of our revenues in any way,” he said.
Among the charges consumers currently shoulder are the feed-in tariff allowance and the green energy auction allowance, both designed to support the country’s growing renewable energy sector. Separate universal charge components go toward funding electrification efforts in remote communities that remain off the main grid.
Zaldarriaga also stressed that the setup is industry-wide, not unique to Meralco. Other power distributors across the country carry the same mandated charges, which are passed on to the relevant government agencies. “These mandated charges are remitted to the government through the relevant agencies,” he said.
The clarification came after a wave of consumer complaints on social media, with many questioning why their bills included fees tied to the lifeline rate — a subsidy program that provides free electricity to indigent households consuming no more than 50 kilowatt-hours per month. Eligibility is limited to 4Ps beneficiaries and households officially classified as living below the poverty line under Philippine Statistics Authority standards.
Generation and transmission fees, which make up a significant portion of electricity bills, are remitted directly to power producers and the national grid operator.
Zaldarriaga added that every charge undergoes regulatory scrutiny before it reaches consumers. “We are highly regulated, with all charges in electricity bills subject to rigorous review and regulatory clearance prior to implementation.” The distribution charge — the sole component that flows to Meralco — has not been adjusted upward since it was reduced in 2022.
