Meralco has expressed support for ongoing government and industry efforts to bring down electricity rates, while stressing that the bulk of power charges are driven by generation costs and other pass-through expenses beyond the distribution utility’s control.

In an official statement, the distribution utility said it has been working with regulators and industry stakeholders on measures aimed at easing the burden on consumers, as policymakers continue to explore options for reducing electricity costs.

Meralco emphasized that electricity prices in the Philippines reflect actual power supply costs, noting that local consumers do not benefit from the same level of government subsidies available in some neighboring countries.

“We would like to reiterate that electricity rates in the Philippines, not just Meralco’s, reflect the true cost of power as these do not have government subsidies unlike those in our neighboring countries,” said Joe Zaldarriaga, Meralco Vice President and Head of Corporate Communications.

According to the utility, generation charges account for the largest portion of electricity bills and are influenced by market conditions, fuel prices, supply availability, and foreign exchange movements.

Zaldarriaga also underscored the transparency of its billing system, saying customer bills are unbundled to show the breakdown of charges, including generation, transmission, system loss, taxes, and other government-mandated fees.

“Most of which are pass-through costs,” he said.

The utility further noted that its own distribution charge represents only around 12% of a typical customer’s total electricity bill.

Meralco added that its distribution rate has remained unchanged for more than 15 years despite inflation, rising commodity prices, and the depreciation of the peso against the US dollar. During the same period, it said it continued investing in grid modernization, reliability improvements, digitalization, and customer service enhancements.

The statement comes as policymakers and energy stakeholders continue to examine options for reducing electricity costs, a longstanding concern for households and businesses amid the Philippines’ relatively high power prices in the region.

“We support long-term solutions that prioritize energy security and continued delivery of safe, reliable and stable electricity service for the benefit of the consumers,” Zaldarriaga said.

What measures do you think could deliver sustainable reductions in electricity rates while maintaining energy security and attracting investments in the Philippine power sector?

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