Meralco: Seniors, 4Ps, RE development benefit from power charges

April 28, 2026 | 12:00am

MANILA, Philippines — Electricity charges collected from consumers to subsidize low-income households and other vulnerable sectors are mandated by the government, Manila Electric Co. clarified.

Meralco spokesman Joe Zaldarriaga said subsidies are already embedded in existing policies, including senior citizen discounts, the lifeline rate for Pantawid Pamilyang Pilipino Program (4Ps) beneficiaries and electrification programs for remote areas.

Consumers also shoulder charges like the feed-in tariff allowance (FIT-All) and the green energy auction allowance (GEA-All), both of which help fund the expansion of renewable power projects across the country.

“These mandated charges are remitted to the government through the relevant agencies,” Zaldarriaga told reporters yesterday.

He reiterated that these costs are not new and are not exclusive to Meralco, as other power utilities also impose them.

Meralco issued the clarification following recent backlash from consumers, who took to social media to express frustration over high electricity bills. Some also criticized the company for collecting charges for the lifeline rate subsidy program.

Through the lifeline rate, indigent families may qualify for free electricity, provided their consumption does not exceed 50 kilowatt-hours.

Under existing rules, only 4Ps beneficiaries and households classified as living below the poverty threshold set by the Philippine Statistics Authority may avail themselves of the subsidy.

For the universal charge, subsidies help fund the government’s electrification programs in remote and far-flung areas.

Pass-through charges for generation and transmission, meanwhile, are paid to power producers and the national grid operator, respectively.

“We act solely as collection agents for these costs. These do not form part of our revenues in any way,” Zaldarriaga added. “We are highly regulated, with all charges in electricity bills subject to rigorous review and regulatory clearance prior to implementation.”

As for the distribution charge, the only portion that goes to Meralco, it has remained unchanged since its reduction in 2022.