Social Welfare Secretary Rex Gatchalian has pushed back against statements linking the Pantawid Pamilyang Pilipino Program (4Ps) to higher electricity rates, following public concern over a sharp increase in power bills in April.

Gatchalian said the narrative suggesting 4Ps households contributed to the increase was incorrect, and pointed instead to generation-related costs as the main driver of the adjustment.

“The 4Ps is not the reason why the charges increased in April. That bill shock came from their own generation. Their generation expense went up,” Gatchalian said in a televised interview, describing the claims as “fake news” by Meralco.

He also argued that the subsidy provided under the Lifeline Rate has a minimal impact on overall electricity charges.

The Secretary noted that the average effect of the Lifeline Rate—the discount extended to low-income households—is about “less than half a centavo, roughly PHP 0.40, per bill.”

Gatchalian emphasized that 4Ps beneficiaries typically consume very low levels of electricity.

“Napakaliit lang ng kinokonsumo ng 4Ps… they almost have no appliances at home to run. At most, an electric fan and a few light bulbs. So, they are not the reason why it went that high,” he said.

He also pointed to the scale of Meralco’s customer base compared with 4Ps beneficiaries, noting that the utility serves 8.11 million customers, while 135,411 households are enrolled under the lifeline subsidy program.

On proposals to revisit the Expanded Lifeline Rate Law, Gatchalian said the government remains open to amendments but stressed that costs should not be shifted to other consumers. He suggested that Meralco, given its earnings, should consider absorbing the subsidy as part of its corporate responsibility.

“Can you imagine, given how much they are charging, they should be absorbing the lifeline rates. It should be their CSR,” he said. “When we are called to the Senate, that is exactly what I will say.”

He added that while the 4Ps program has produced measurable social outcomes, including tens of thousands of board passers and millions of graduates, it should not be used to justify price increases driven by generation and supply costs.

In response, Meralco clarified that it does not attribute the April rate increase to Lifeline Rates or subsidy programs.

“We agree with Secretary Gatchalian. In the news reports that came out after our media briefing last week to explain April rates, it did not point to Lifeline Rates for 4Ps beneficiaries including the other policy charges as the driver of the upward rate adjustment,” said Meralco Vice President and Head of Corporate Communications Joe Zaldarriaga.

“In fact, many of our information materials encourage enrollment of eligible Lifeline beneficiaries to the program,” Zaldarriaga said.

He also clarified the estimated impact of the subsidy on bills.

“I have consistently stated that the actual impact is only one centavo per kwh and thus has no significant bearing on the total cost of the electric bill,” he said.

The exchange comes amid continued scrutiny of rising electricity prices, with policymakers and stakeholders debating the drivers of recent rate adjustments and the allocation of subsidy costs.

How should subsidy programs like lifeline rates be funded—through utilities, government support, or broader cross-subsidies across consumers?