Pass-through burden

The public outrage against the so-called “bill shocks” from the latest monthly electric bills we consumers received is misplaced, to say the least. Specifically, it has been wrongly directed against the Manila Electric Co. (Meralco). For Meralco’s household customers using 200 kilowatt hours (kWh) and more, we saw an almost doubling of charges in our monthly bills. 

Our Meralco bill increase is one of the effects of the continuing Middle East (ME) conflict that has driven up global crude oil prices. Aside from being an oil-dependent country, our electricity generating capacity largely relies on fossil fuels like diesel and bunker.

The economic impact of the oil price increase coincided with the summer period here in the Philippines. Naturally, electricity consumption is seasonally much higher with the longer hours of use of air-conditioners, electric fans, refrigerators, among other electricity-powered appliances. 

What shocked many of us, for sure, is seeing a new item in our Meralco bills.

As a distribution utility, Meralco has been mandated to collect billing charges in our electric bills, the bulk of which are government taxes. That has always been the official line of Joe Zaldarriaga, official spokesman for Meralco. 

As identified in our Meralco electric bill, we are being charged each billing cycle the following: generation, transmission, system loss, distribution (Meralco) and various government taxes. Our Meralco bills also include the pass-through charges on universal charges for missionary electrification, feed-in-tariff allowance (FIT-All for renewable energy sources) and lifeline rate, or the government-mandated discount for low income and marginalized households. And the latest, the inclusion of senior citizen discount. 

Much worse is that we are also doubly charged when we pay taxes for systems loss and for the same state subsidies. 

In a statement issued last April 27, the Energy Regulatory Commission (ERC) insisted they imposed these pass-through charges “in accordance with existing laws.” 

From out of the blue, there is this new animal called GEA-All (renewables) added to our Meralco bill starting last February. Even Meralco did not know how this new item found its way to our monthly utility bill. And here comes again the ERC, which issued late Friday night a public advisory that it has ordered the temporary suspension of the collection of the GEA-All. 

The ERC suspended GEA-All rate equivalent to P0.0371 per kWh effective May and June billing of consumers nationwide. Supposedly intended to help ease the pressure on electric bills amid the oil price crisis, the ERC order applied to all collecting agents including power utilities like Meralco, retail electricity suppliers and the National Grid Corp. as the transmission agent.   

“While the ERC remains fully committed to supporting the country’s transition to cleaner and more sustainable energy sources, we also recognize the immediate challenge being faced by Filipino households due to rising prices and global uncertainties,” ERC chairman Francis Saturnino Juan said.

Gee, thanks – we owe ERC this temporary relief on GEA-All? In the first place, it has been imposed to us consumers without benefit of a public hearing. By what law was this GEA-All added to our electric bills? 

At least, the FIT-All was expressly mandated under the Renewable Energy Act of 2008. Section 7 of Republic Act (RA) 9513 stated: “To accelerate the development of emerging renewable energy resources, a feed-in-tariff system for electricity produced from wind, solar, ocean, run-of-river, hydropower and biomass is mandated.”

The passage into law of RA 9513 got strong support from the country’s energy producers, including Meralco.

We could only pin our hope on our lawmakers of the present 20th Congress who have initiated moves to look into these pass-on burdens to us electricity consumers. 

“It’s about time to review these government-mandated pass-through to our people,” Sen. Sherwin Gatchalian declared at our Kapihan sa Manila Bay news forum last Wednesday. Gatchalian estimated total pass-through charges range about 53 centavos per kWh in our Meralco bills.

Power utilities have been raking in a lot of money that losing control is not an option to its owners.

Founded in March 1903, Meralco was put up by the late Eugenio Lopez Sr., who was purportedly pressured to turn over control to the Meralco Foundation Inc. (MFI) following the declaration of martial law in 1972. The Lopez family – currently embroiled in an intra-family corporate control dispute – was forced to sell their controlling stake to the MFI that was linked with the administration of the late president Ferdinand Marcos Sr. After the martial law regime from 1972 to 1986, it was among the Lopez-owned companies that were taken over but eventually returned to them during the February EDSA People Power Revolution.

As of May 2026, Metro Pacific Investments Corporation (MPIC), led by Manuel V. Pangilinan, now holds the controlling stake in Meralco. The company is jointly owned by a consortium consisting of MPIC, JG Summit Holdings (Gokongwei family) and Beacon Electric Asset Holdings, with a small stake held by the Lopez family. 

Disclosure: The Philippine STAR is part of the MPIC group of media companies under MediaQuest.

Aside from a major distribution company, Meralco has MGen, a generation subsidiary company that is driving their transition toward cleaner energy. MGen boasts a diverse portfolio – including solar (MGen Renewables), natural gas and thermal – with a target to surpass 1,500 MW of renewable energy by 2027. 

MGen, a 640-MW base load power plant, is building the world’s largest integrated solar and battery storage project via Terra Solar Philippines Inc. (TSPI), a partnership between MGen and SP New Energy Corporation (SPNEC), which its former owner, now Batangas Rep. Lean Leviste, earlier sold to the MPIC but who is now being sued by the government.

For the past 38 years, Zaldarriaga has been with Meralco and rose through the ranks and is now vice president and head of corporate communications. As the human face of Meralco, Joe unfairly gets the severe bashing on the latest “bill shocks” of Meralco.

Thanks but no thanks to these passed on burden of the ERC to us electricity consumers.