Meralco supports gov’t push to reduce electricity rates

Meralco has expressed strong support for the government and the energy sector’s efforts to identify sustainable measures that will help reduce electricity rates for consumers.

The power distributor said it has consistently taken a proactive role in pursuing initiatives that help ease the burden on consumers and mitigate increases in electricity rates under the leadership of the Department of Energy (DOE) and the guidance of the Energy Regulatory Commission (ERC).

Meralco emphasized that electricity rates in the Philippines, not only within its franchise area, reflect the actual cost of power generation and delivery. Unlike several neighboring countries, Philippine electricity rates are generally not subsidized by the government. As a result, a significant portion of power costs is driven by generation charges, which are influenced by market conditions, fuel prices, supply availability, and foreign exchange movements.

The company also reaffirmed its commitment to transparency, noting that customer bills are fully unbundled to clearly show how charges are allocated. These include generation, transmission, system loss, taxes, and other government-mandated charges, most of which are pass-through costs that Meralco does not earn from.

Meralco further pointed out that its distribution charge accounts for only about 12% of the average customer bill. The company noted that its distribution rate has remained unchanged for more than 15 years despite rising operating costs, inflation, and the continued depreciation of the peso against the US dollar.

Despite these challenges, Meralco said it has continued investing in system modernization, reliability improvements, digitalization initiatives, and customer service enhancements to ensure the delivery of quality service.

Looking ahead, Meralco said it remains open to constructive dialogue and collaboration with government agencies, regulators, lawmakers, and industry stakeholders on measures that are fair, transparent, and supported by appropriate legal and regulatory frameworks.

The company reiterated its support for long-term solutions that strengthen energy security while ensuring the continued delivery of safe, reliable, and stable electricity service for the benefit of Filipino consumers.