Meralco clarifies pass-through charges in electricity bills
- April 24, 2026
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Manila Electric Co. (Meralco) has moved to address circulating social media claims alleging “additional” charges in electricity bills, stressing that these costs are government-mandated pass-through items and not revenues for the utility.
In an official statement, the country’s largest power distributor said the questioned charges are standard components of electricity billing across all distribution utilities and electric cooperatives, and are transparently itemized for consumers.
“The electricity bills detail components and charges in a transparent manner,” said Meralco Vice President for Corporate Communications Joe R. Zaldarriaga.
The company emphasized that these charges do not accrue to Meralco but are collected and remitted to relevant government agencies in compliance with existing policies.
“These charges include mandated cross subsidies including taxes, which are remitted to the government through the relevant agencies. In addition, these are implemented by all distribution utilities and electric cooperatives and are not unique to Meralco,” Zaldarriaga said.
Among the pass-through components cited were subsidies and policy-driven charges such as the Senior Citizens discount, Lifeline Rate discount for Pantawid Pamilyang Pilipino Program (4Ps) beneficiaries, Feed-in Tariff Allowance, and the Green Energy Auction Allowance—mechanisms designed to support vulnerable sectors and fund the country’s energy transition.
“I wish to clarify that these are not company-imposed fees but are mandated to support vulnerable sectors and accelerate the country’s transition to cleaner energy,” he added.
Zaldarriaga also underscored that all bill components are presented as separate line items to provide customers with visibility on how charges are allocated. He reiterated that Meralco complies with regulatory directives on refunds, which are likewise reflected in billing statements and implemented based on timelines approved by regulators.
Meralco urged customers with questions about their bills to use its customer service channels for clarification and assistance.
Earlier this week, the Energy Regulatory Commission (ERC) ordered Meralco to accelerate the refund of PHP 14.17 billion to customers, directing the remaining balance to be returned at PHP 0.2511 per kilowatt-hour over the next 12 months. The refund will appear as an AWAT (Refund)/Collect line item in electricity bills, with the regulator saying the move is intended to provide more immediate relief to consumers.
With both pass-through charges and accelerated refunds reflected in bills, how can the sector improve transparency so consumers better understand what they are paying for?
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