Meralco says open to rate relief measures

POWER DISTRIBUTOR Manila Electric Co. (Meralco) said it is open to working with regulators and stakeholders on measures that could help ease electricity costs, following rising public concern over higher bills.

“Meralco remains open to constructive discussions and is willing to work with government, regulators, lawmakers and stakeholders on measures that are fair, transparent, and supported by appropriate laws and regulatory mechanisms,” Joe R. Zaldarriaga, Meralco vice-president and head of corporate communications, said in a statement over the weekend.

The statement came after Akbayan Party-list called on Congress to investigate “various and often opaque charges” in electricity bills, citing public frustration over persistently high power costs.

“If these charges are legitimate, they must be clearly and intelligibly explained,” Party-list Rep. Jose Manuel T. Diokno said. “If they are excessive or poorly designed, Congress has the duty to correct them.”

Meralco said it supports efforts by the Department of Energy and Energy Regulatory Commission to explore ways to reduce electricity rates.

“We have always been very proactive in seeking ways to ease the burden on all power consumers and implement initiatives that mitigate increases in rates,” Mr. Zaldarriaga said.

He added that Philippine electricity prices reflect the “true cost of power,” noting the absence of government subsidies that exist in some neighboring countries.

Generation charges make up the bulk of electricity bills and are influenced by fuel prices, supply conditions and foreign exchange movements, he said.

Meralco’s distribution charge accounts for about 12% of the total bill and has remained stable despite rising operating costs and peso volatility, according to the company.

“In spite of this, Meralco continued its investments in system modernization, reliability improvements, digitalization, and customer service enhancements,” Mr. Zaldarriaga said.

He added that electricity bills are “unbundled” to show cost components such as generation, transmission, system losses, taxes and other pass-through charges.

For May, Meralco reduced overall electricity rates by P0.0151 per kilowatt-hour (kWh) to P14.3345 per kWh, following regulatory-approved measures aimed at cushioning consumers from elevated global energy prices.

The company serves more than 8.1 million customers across Metro Manila and nearby provinces including Bulacan, Cavite, Rizal, Laguna, Batangas, Pampanga and Quezon.

Meralco’s controlling shareholder, Beacon Electric Asset Holdings, Inc., is partly owned by PLDT, Inc. Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has an interest in BusinessWorld through the Philippine Star Group, which it controls. — Sheldeen Joy Talavera