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Workers from the Manila Electric Co. install an electric meter on a concrete post along Commonwealth Avenue in Quezon City on Aug. 9, 2021.
The STAR / Boy Santos
MANILA, Philippines — The Manila Electric Company (Meralco) clarified claims circulating on social media regarding "additional" charges appearing in electricity bills, explaining that these costs are government-mandated "pass-through" expenses rather than company-imposed fees.
In a statement on Sunday, April 26, the electric concessionaire explained that these charges do not contribute to the earnings of distribution utilities like Meralco.
Instead, it represents costs that the company is legally required to collect and remit to various government agencies and energy funds.
“The electricity bills detail components and charges in a transparent manner,” Meralco Vice President for Corporate Communications Joe Zaldarriaga said.
“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,” he added.
Meralco refers to subsidies such as the Senior Citizens discount, the Lifeline Rate discount for 4Ps beneficiaries, the Feed-in Tariff Allowance and the Green Energy Auction Allowance.
“I wish to clarify that these are not company-imposed fees but are mandated, designed to support vulnerable sectors and accelerate the country’s transition to cleaner energy,” Zaldarriaga said.
Lifeline rate. The lifeline rate discount for 4Ps members is mandated by Republic Act (RA) No. 1152, signed in 2021.
The law expands and extends the lifeline rate mandated by Section 73 of Republic Act No. 9136, otherwise known as the "Electric Power Industry Act of 2001."
According to RA 1152, a lifeline rate is a socialized pricing mechanism designed to provide financial assistance to electricity consumers, particularly those living below the poverty line.
Its goal is to ensure a more equitable distribution of energy subsidies for qualified marginalized end-users.
"SEC. 73. Lifeline Rate. - In order to provide assistance to electricity consumers, especially those living below the poverty line, and to achieve a more equitable distribution of the lifeline subsidy, a socialized pricing mechanism called a lifeline rate for qualified marginalized end-users shall be set by the ERC, which shall be exempted from the cross subsidy phase-out under this Act for a period of fifty (50) years, unless otherwise extended by law. The level of consumption, subsidy, and rate shall be determined by the ERC after due notice and hearing: Provided, That the ERC shall primarily utilize data from the Philippine Statistics Authority (PSA) in the determination of the level of consumption.”
According to the implementing rules and regulations (IRR) of RA 1152, the following individuals are “qualified marginalized end-users” for the subsidy:
(a) Qualified household beneficiaries under Republic Act No. 11310, otherwise known as the “Pantawid Pamilyang Pilipino Program” or “4Ps Act,” subject to certain conditions provided under Section 73 of Republic Act No. 9136, as amended by Section 1 of Republic Act No. 11552; or
(b) A marginalized end-user living below the poverty threshold established by the Philippine Statistics Authority (PSA), who possesses the qualifications and none of the disqualifications under the Act and its IRR.
The IRR also defines “marginalized end-users” as “household electricity consumers whose household income falls below the poverty threshold of the province or district.”
