Manila Electric Company (Meralco) clarified that the April increase in electricity rates was not driven by lifeline subsidies for Pantawid Pamilyang Pilipino Program (4Ps) beneficiaries, as public discussion continues over the causes of recent “bill shock” among consumers.

In a statement, Meralco Vice President and Head of Corporate Communications Joe Zaldarriaga said the utility had not directly linked the upward adjustment to Lifeline Rates or other policy-related subsidies.

“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,” Zaldarriaga said.

He added that the financial impact of the Lifeline subsidy on customers’ bills remains negligible. 

“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, noting that the company continues to encourage eligible households to avail of the program.

The clarification comes amid public debate over the composition of April electricity bills, which reflected higher generation charges and prompted scrutiny of possible contributing factors, including subsidies extended to low-income consumers.

Department of Social Welfare and Development Secretary Rex Gatchalian, who earlier spoke on the issue, rejected any linkage between 4Ps beneficiaries and the increase in power rates, saying the adjustment was driven by generation costs rather than social protection programs.

“The 4Ps is not the reason why the charges increased in April. That bill shock came from their [Meralco] own generation. Their generation expenses went up,” Gatchalian said in a televised interview.

He also stressed that the consumption profile of 4Ps households is minimal compared with other customer segments, noting their limited use of electricity for basic needs.

Gatchalian further argued that the number of 4Ps households enrolled in the lifeline subsidy program is small relative to Meralco’s overall customer base, and said the subsidy’s cost should not be cited as a driver of broader price movements.

The DSWD chief also raised the possibility of reviewing the Expanded Lifeline Rate Law but said any associated costs should not be passed on to other consumers, suggesting that Meralco could absorb the subsidy as part of its corporate responsibility.

What do you think is the real driver behind rising electricity prices—generation costs, policy charges, or something else?

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