BUSINESS
Advocates Philippines
Meralco Defends Power Rates, Backs Efforts To Cut Electricity Costs
Photo credit: MERALCO
Meralco has expressed strong support for ongoing government efforts to explore ways of lowering electricity costs for Filipino consumers, while emphasizing that power rates largely reflect the actual cost of generating and delivering electricity.
In a statement, the power distributor said it has consistently worked with the Department of Energy (DOE), the Energy Regulatory Commission (ERC), and other industry stakeholders to find sustainable solutions that can help ease the burden of rising electricity expenses on households and businesses.
The company noted that electricity prices in the Philippines are not subsidized by the government, unlike in several neighboring countries. Because of this, rates are heavily influenced by factors such as fuel prices, electricity supply conditions, foreign exchange movements, and market forces that affect generation costs.
Meralco also highlighted its commitment to transparency, pointing out that customer bills are unbundled to show exactly where charges go, including generation, transmission, system loss, taxes, and other government-mandated fees. According to the company, most of these charges are pass-through costs that do not generate revenue for Meralco.
The utility stressed that its own distribution charge makes up only about 12 percent of the average customer's total electricity bill. It also pointed out that its distribution rate has remained unchanged for more than 15 years despite rising inflation, increasing costs of goods and services, and the continued depreciation of the peso against the US dollar.
Despite maintaining the same distribution rate, Meralco said it has continued investing in system modernization, reliability improvements, digitalization initiatives, and customer service enhancements to improve the overall quality of electricity service.
Looking ahead, the company said it remains open to working with government agencies, regulators, lawmakers, and other stakeholders to develop measures that are fair, transparent, and legally sound.
Meralco added that it supports long-term solutions aimed at strengthening energy security while ensuring the continued delivery of safe, reliable, and stable electricity service for consumers.
In a statement, the power distributor said it has consistently worked with the Department of Energy (DOE), the Energy Regulatory Commission (ERC), and other industry stakeholders to find sustainable solutions that can help ease the burden of rising electricity expenses on households and businesses.
The company noted that electricity prices in the Philippines are not subsidized by the government, unlike in several neighboring countries. Because of this, rates are heavily influenced by factors such as fuel prices, electricity supply conditions, foreign exchange movements, and market forces that affect generation costs.
Meralco also highlighted its commitment to transparency, pointing out that customer bills are unbundled to show exactly where charges go, including generation, transmission, system loss, taxes, and other government-mandated fees. According to the company, most of these charges are pass-through costs that do not generate revenue for Meralco.
The utility stressed that its own distribution charge makes up only about 12 percent of the average customer's total electricity bill. It also pointed out that its distribution rate has remained unchanged for more than 15 years despite rising inflation, increasing costs of goods and services, and the continued depreciation of the peso against the US dollar.
Despite maintaining the same distribution rate, Meralco said it has continued investing in system modernization, reliability improvements, digitalization initiatives, and customer service enhancements to improve the overall quality of electricity service.
Looking ahead, the company said it remains open to working with government agencies, regulators, lawmakers, and other stakeholders to develop measures that are fair, transparent, and legally sound.
Meralco added that it supports long-term solutions aimed at strengthening energy security while ensuring the continued delivery of safe, reliable, and stable electricity service for consumers.
May 30, 2026
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