Bill Breakdown FAQs

Lifeline Subsidy and Discount

1. Why is Meralco charging my business for Lifeline and what is this for?

The Lifeline subsidy rate is mandated by the government (Congress, DOE, DSWD and ERC) to provide assistance to 4Ps beneficiaries and certified-marginalized customers through bill discounts based on electricity consumption:

0–50 kWh: 100% discount
51–70 kWh: 35% discount
71–100 kWh: 20% discount

Currently, this amounts to P0.01/kWh, and is being charged to non-lifeline customers and businesses. Portion of the collected amount goes to Meralco's lifeline customers as bill discount. The rest is remitted to the Power Sector Assets and Liabilities Management Corporation (PSALM).

Meralco serves as a collecting agent of this pass-through charge but does not earn from it. This is implemented not just by Meralco, but by all distribution utilities and electric cooperatives nationwide.

This is not a new charge. Meralco has been collecting this since 2003.

2. What is the lifeline discount?

This is the discount rate given to 4Ps beneficiaries and certified-marginalized customers who are financially unable to pay their electricity bills at full cost.

Qualified customers get discounts set by the Energy Regulatory Commission (ERC), based on electricity consumption:

0–50 kWh: 100% discount
51–70 kWh: 35% discount
71–100 kWh: 20% discount

3. Who are qualified for the lifeline program?

Customers who meet any of the following criteria are qualified for the lifeline program:

Beneficiaries of the "4Ps Act" (Pantawid Pamilyang Pilipino Program) under Republic Act No. 11310.
Customers considered to be living below the poverty threshold as certified by the Local Social Welfare and Development Office.

Senior Citizen Subsidy and Discount

1. Why is Meralco charging my business for Senior Citizen and what is this for?

The Senior Citizen subsidy charge is mandated by the government (Congress and ERC) to cover the discount on electricity being given to:

Senior citizens whose bill is under their name and consuming 100 kWh & below: 5% discount
DSWD-accredited senior citizen centers: 50% discount

Currently, this amounts to P0.0001/kWh, and is being charged to all other customers who are not being given the Senior Citizen discount.

Meralco serves as a collector of this pass-through charge but does not earn from it. This is implemented not just by Meralco, but by all distribution utilities and electric cooperatives nationwide.

This is not a new charge. Meralco has been collecting this since 2011.

2. What is the senior citizen discount?

It is a discount on electricity being given to:

Senior citizens whose bill is under their name and consuming 100 kWh & below: 5% discount
DSWD-accredited senior citizen centers: 50% discount

System Loss

1. Why is Meralco charging my business for System Loss and what is this for?

The system loss charge is allowed by the government to recover the cost of power lost due to technical and non-technical reasons. This changes depending on the generation and transmission charges.

The ERC has set a maximum level of system loss that distribution utilities like Meralco can collect. Losses beyond this level is shouldered by the distribution utility.

Meralco serves as a collector of this pass-through charge but does not earn from it. This is implemented not just by Meralco, but by all distribution utilities and electric cooperatives nationwide.

This is not a new charge.

2. Why is there System Loss?

Because electricity travels far distances, from power plants to our homes, energy is lost along the way.

There are technical system losses, which utilities try to minimize but can't fully eliminate:

Electricity flowing through wires generates heat
Power passes through multiple transformers
Voltage and stability concerns in the power system also cause minor losses

There are also non-technical system losses, due to electricity theft or illegal connections.

3. Why are you charging me for losses due to electricity theft or illegal connections? Why don't you charge it to the power pilferers?

We understand your frustration. We assure you that Meralco implements all efforts possible to minimize system losses.

Meralco is only allowed to collect within a maximum level set by the ERC. Losses beyond this level cannot be passed on to customers, and is shouldered by the distribution utility.

Any amount recovered from power pilferers are given back to customers in the form of reduction in the generation charge.

Government Taxes

1. Why is Meralco charging my business for Government Taxes and what is this for?

The charge for Government Taxes is mandated by the government. It covers the following:

Real Property Tax and Local Franchise Tax, which go to LGUs
Value Added Tax and Energy Tax, which goes to the National Government

Meralco serves as a collector of this pass-through charge but does not earn from it. This is implemented not just by Meralco, but by all distribution utilities and electric cooperatives nationwide.

This is not a new charge.

2. Shouldn't Meralco pay for the taxes? Why is it being charged to my business?

Taxes are charged to customers as mandated by existing laws and in accordance with ERC regulations.

Universal Charges

1. Why is Meralco charging my business for Universal Charges and what is this for?

The Universal Charges are mandated by the government (Congress and ERC) to cover the following:

Missionary Electrification: funds electricity service in remote or off-grid communities that are not connected to the national grid transmission system, and are difficult or costly to serve
Environmental Charge: a fixed charge of P0.0025/kWh, used for watershed rehabilitation and management
NPC stranded debts: covers the unpaid financial obligations of the National Power Corporation

Meralco serves as a collector of these pass-through charges but does not earn from it. This is implemented not just by Meralco, but by all distribution utilities and electric cooperatives nationwide. This charge is remitted to the Power Sector Asset and Liabilities Management (PSALM) Corp.

This is not a new charge. Meralco has been collecting this since 2003.

FiT-All

1. Why is Meralco charging my business for FiT-All and what is this for?

The charge for Feed-in Tariff Allowance (FiT-All) is mandated by the government to support the development of renewable energy projects under the Feed-in Tariff (FiT) Program.

FIT-All rate is set annually by the ERC. This is a pass-through charge collected by Distribution Utilities, such as Meralco, Retail Electricity Suppliers (RES), and the National Grid Corporation of the Philippines (NGCP) and is remitted to the National Transmission Corporation (TransCo).

Meralco serves as a collector of this pass-through charge and does not earn from it.

This is not a new charge. Meralco has been collecting this since 2015.

GEA-All

1. Why is Meralco charging my business for GEA-All and what is this for?

The charge for Green Energy Auction Allowance (GEA-All) is mandated by the government (Congress, DOE, and ERC) to fund the development of renewable energy projects like solar, wind, and hydro. It supports the Green Energy Auction Program (GEAP), a government program where renewable energy projects are selected through competitive bidding to ensure the lowest possible cost for customers.

Currently, GEA-All is being charged at PhP0.0371/kWh. This is a pass-through charge collected by Distribution Utilities, such as Meralco, Retail Electricity Suppliers (RES), and the National Grid Corporation of the Philippines (NGCP) to be remitted to the National Transmission Corporation (TransCo).

Meralco serves as a collector of this pass-through charge but does not earn from it.

This is a new charge that Meralco started collecting in January 2026.

Bill Charges

1. Why are there so many charges in my bill? Why is Meralco charging me for all of these?

The Electric Power Industry Reform Act (EPIRA) of 2003 requires the unbundling or breakdown of electricity rates so customers can:

See clearly where their payment goes, as each charge corresponds to a specific service or program
Ensure that government-mandated charges are applied correctly

All charges reflected in the bill have a regulatory basis — either mandated by the government or through ERC rules. Meralco does not collect any charge without a regulatory basis.

Only 12% of your bill goes to Meralco for the delivery of electricity and customer service. The 88% are pass-through charges that Meralco collects but does not earn from:

64%: Generation charge, which covers the cost of power and is remitted to power generators
11%: Taxes, subsidies and other charges, which are remitted to the government and other accredited agencies
8%: Transmission charge, which covers the cost of delivering electricity from power plants to Meralco and helping ensure grid stability. This is remitted to the National Grid Corporation of the Philippines (NGCP).
5%: System loss, which covers losses due to technical and non-technical factors, and is regulated and capped by the government.

These charges are implemented not just by Meralco, but by all distribution utilities and electric cooperatives nationwide. These charges are not new. Meralco has been collecting these for many years.

2. Does Meralco earn from these pass-through charges?

Meralco only collects these pass-through charges but does not earn from them:

Generation charge, which covers the cost of power and is remitted to power generators
Taxes, subsidies and other charges, which are remitted to the government and other accredited agencies
Transmission charge, which covers the cost of delivering electricity from power plants to Meralco and helping ensure grid stability. This is remitted to the NGCP.
System loss, which covers losses due to technical and non-technical factors, and is regulated and capped by the government.

These charges are implemented not just by Meralco, but by all distribution utilities and electric cooperatives nationwide. These charges are not new. Meralco has been collecting these for many years.

3. Shouldn't the government pay for these pass-through charges? Why are these being charged to me?

Meralco defers to the wisdom of the government in the implementation of the charges. All the fees charged to the customer are subject to the approval and oversight of the Energy Regulatory Commission.

These pass-through charges:

Are government-mandated
Don't go to Meralco
Are not unique to Meralco
Are not new charges

Meralco does not collect any charge without a regulatory basis.

4. Why do electricity rates keep going up?

Electricity rates move when the different components of your bill change.

Generation charge, which makes up 64% of your bill, changes monthly depending on:

Global fuel prices (such as coal, gas, and oil)
Supply and demand in the power market
Availability of power plants
Forex

Because it is the largest portion, any movement in the generation charge can significantly impact your total bill.

Increases in the Transmission Charge, which makes up 8% of your bill, can also contribute to movement in rates.

All charges reflected in the bill have a regulatory basis — either mandated by the government or through ERC rules. Meralco does not collect any charge without a regulatory basis.

5. Why is Meralco's rate so high? You're a big company — shouldn't you benefit from economies of scale and charge less?

Meralco's distribution charge is regulated by the Energy Regulatory Commission (ERC). The ERC sets a cap on what distribution utilities can charge, and this rate goes through a rigorous review and approval process before it can be implemented. Meralco cannot raise its distribution charge on its own.

In fact, Meralco's distribution charge did not increase since 2015, even as the cost of operations, materials, and labor has increased over the years. The benefits of scale are already reflected in our distribution rate, which is why it has remained stable for years despite inflation and rising costs across the industry.

Only 12% of your bill goes to Meralco for the delivery of electricity and customer service. The remaining 88% are pass-through charges that Meralco collects but does not earn from:

64%: Generation charge, which covers the cost of power and is remitted to power generators. Because this makes up a large portion of the bill, the ERC ensures that Meralco sources electricity at the lowest possible cost.
11%: Taxes, subsidies and other charges, remitted to the government and accredited agencies
8%: Transmission charge, remitted to the National Grid Corporation of the Philippines (NGCP)
5%: System loss, regulated and capped by the government, remitted to power generation companies and the NGCP

When customers see higher bills, the increase is most often coming from these pass-through components, not from Meralco's distribution charge. Meralco does not collect any charge without a regulatory basis.

6. Can Meralco defer the collection of some of these charges to help its customers?

Meralco can't defer the collection of most charges as it doesn't have full control over all the components of the bill.

Only 12% of your bill goes to Meralco for the delivery of electricity and customer service. The remaining 88% are pass-through charges that Meralco collects but does not earn from:

64%: Generation charge remitted to power generation companies
11%: Taxes, subsidies and other charges remitted to the government and other accredited agencies
8%: Transmission charge remitted to the National Grid Corporation of the Philippines

These charges must be remitted on time to the appropriate entities. Otherwise, Meralco would have to shoulder the cost.

7. My bill doubled/tripled this month even if my consumption did not change. What caused the increase?

Your bill may have increased due to an increase of P0.53 centavos per kilowatt-hour in generation charge in April, which makes up 64% of your bill. Even if your consumption remains the same, an increase in rates will result in a higher bill.

And since it's summer, cooling appliances such as air conditioners and electric fans are used longer and more often and refs are opened more frequently. It is also summer vacation for young students and many employees have switched to a work-from-home set-up. These may have also contributed to higher electricity consumption. You may check the consumption chart in your bill to compare your consumption with the previous month and the same period last year.

8. We only added aircon because of the heat, but why is my bill too high?

Adding even just one aircon unit can increase your consumption if:

It runs for several hours a day or overnight
The temperature is set very low
The unit is not energy-efficient or properly maintained

Also, during summer, aircon compressors work harder and run longer to keep the room cool due to the heat, which increases electricity consumption even further.

And with the increase in generation charge in April, the biggest component of your bill, this can significantly increase your total bill.

You may check the consumption chart in your bill to see how your usage has changed compared to previous months.

9. My bill is too high/I think my bill is incorrect. Are you sure the meter reading is correct? Or was this estimated?

We assure you that the meter reading is correct. You may check your bill for your actual consumption based on your meter reading and compare it with your consumption last month or with the same month last year.

If you check the chart in your bill you can see that consumption usually increases during summer months, which is why bills during this time are higher.

If you still have concerns about your meter reading, you may reach us through any of our channels.

10. Meralco's charges should be audited. The government should step in.

All distribution utilities like Meralco are highly regulated. All charges reflected in the bill have a regulatory basis — either mandated by the government or through ERC rules.

Implementation of these charges is also subject to the review of ERC. Meralco does not collect any charge without a regulatory basis.

11. Shouldn't the government be the one covering these charges since these are their projects and programs?

12. Our bill increased this month despite our efforts to implement energy-saving measures. What is the cause of this?

13. With the refund of P14.17B announced by the ERC, can we expect lower electricity bills in May?

Meralco will comply with the higher average refund rate of P0.2511/kWh, which will be reflected in the bills of all customers under "AWAT (Refund)/Collect", starting May 2026. This may help offset possible increases in May driven by higher fuel prices.

14. What is an Annual Update of Bill Deposit (AUBD)?

The Bill Deposit is an amount required from customers of distribution utilities as a guarantee for payment of electric bills. This is equivalent to their average bill for the past 12 months. This is updated annually and earns interest at a rate prescribed by ERC.

If the bill deposit previously paid is higher than the average bill for the past 12 months, we refund the difference. But if the bill deposit previously paid is lower than the average bill for the past 12 months, we collect the difference in 12 monthly installments.

15. I am only a tenant and I just moved in recently. Why are there so many charges?

The Electric Power Industry Reform Act (EPIRA) of 2003 requires the unbundling or breakdown of electricity rates so customers can:

See clearly where their payment goes, as each charge corresponds to a specific service or program
Ensure that government-mandated charges are applied correctly

All customers are required to pay these charges. All charges reflected in the bill have a regulatory basis — either mandated by the government or through ERC rules. Meralco does not collect any charge without a regulatory basis.

These charges are implemented not just by Meralco, but by all distribution utilities and electric cooperatives nationwide.

16. I am not a high-consuming household. I do not want to be included in paying these charges.

These charges are implemented not just by Meralco, but by all distribution utilities and electric cooperatives nationwide.

General Questions

1. Does my business bill also include the same pass-through charges found in the residential bill?

Yes, all captive Meralco customers are subject to the mandated pass-through charges. These charges are being implemented not just by Meralco, but by all distribution utilities and electric cooperatives in the country.

2. Why is Meralco charging my business with all these fees and what are these for?

These charges are mandated by the government based on specific rules:

System loss: covers the cost of technical and non-technical losses which impacts both the Generation and Transmission charges. This is subject to the caps set by the ERC.
Government taxes: cover Real Property Tax and Local Franchise Tax (go to LGUs) and Value Added Tax (goes to the National Government)
Universal charges: mandated under R.A. 9316 and collected on a monthly basis, remitted to PSALM Corp:
- Missionary Electrification: used to fund electricity in remote or off-grid communities
- Environmental Charge: used for watershed rehabilitation and management
- NPC stranded debts: refers to unpaid financial obligations of the National Power Corporation
FIT-All: collected to support older renewable energy projects under the Feed-in Tariff (FIT) System. FIT guarantees fixed payments to eligible renewable energy developers for many years, with rates set by the government.
GEA-All: supports new renewable energy projects under the Green Energy Auction Program (GEAP). Uses a competitive bidding or auction process where renewable energy developers compete to offer the lowest prices, helping keep costs more affordable for consumers.

3. Why are there so many charges in my bill?

The EPIRA mandated Meralco in 2003 to show a detailed breakdown of all the charges in the bill, to reflect the rate of providing each service.

The charges reflected in the bill are government-mandated and are being implemented not just by Meralco, but by all distribution utilities and electric cooperatives in the country.
88% of the charges in the bill are pass-through and do not go to Meralco:
- 64% goes to generation companies for the cost of power used
- 8% goes to the National Grid Corporation of the Philippines for delivering power from power plants to Meralco
- 16% goes to taxes and subsidies being collected by the government
12% goes to Meralco for distributing power and the services we deliver

4. Does Meralco earn from the pass-through charges?

Meralco only profits from distribution charges to run and maintain the power delivery system — so electricity can reliably reach customers. Meralco acts as the collecting agent of the mandated charges, remitting these fully to the government and accredited institutions.

Bill Breakdown FAQs

Lifeline Subsidy and Discount

Senior Citizen Subsidy and Discount

System Loss

Government Taxes

Universal Charges

FiT-All

GEA-All

Bill Charges

General Questions

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