Meralco customers flag certain charges that bump up electricity bills

Consumers say added costs are imposed without consent.

Electricity bills are once again under scrutiny, as consumers question why certain charges are being passed on to paying households.

Consumers have raised concerns over items reflected in Manila Electric Company (Meralco) bills, arguing that subsidies intended for vulnerable sectors are being spread across all customers instead of being fully absorbed by the government, with costs effectively imposed on bill payers without explicit consent.

Frustrated middle-income households say that while the intent of these programs is not in question, the burden should not fall disproportionately on regular paying customers, especially amid persistent increases in living costs.

Among the charges cited are Feed-in Tariff Allowance (FiT-All) renewable charges, which support incentives for renewable energy producers, and Green Energy Auction (GEA) Allowance renewable charges, which fund government-contracted renewable energy projects. These also include senior citizen and Lifeline discounts.

The industry stance

Meralco, however, said these are part of government-mandated programs designed to support low-income households and qualified senior citizens. The company added that the costs are distributed in small amounts across the entire customer base to sustain the subsidy system.

Beyond official explanations, some consumers online have also raised concerns over so-called “system loss” charges, value-added tax, and other pass-through fees, questioning why costs linked to electricity theft, technical losses, and subsidies are ultimately shouldered by compliant users. Others described billing as increasingly opaque, with multiple layers of charges they say are difficult to trace or fully understand and which they say they are effectively required to pay as part of their monthly bills.

Meanwhile, consumers await Meralco’s rollout of ₱14.17 billion in refunds in May, following the Energy Regulatory Commission’s order to accelerate reimbursements covering July 2022 to December 2024.