Group slams Meralco’s latest power rate hike

LUCENA CITY – The Power for People Coalition (P4P) on Monday denounced the latest electricity rate increase imposed by the Manila Electric Company (Meralco), saying the adjustment adds to the financial burden of consumers already grappling with rising living costs.

In a statement, the consumer advocacy group said the latest increase was Meralco’s third rate hike since March despite calls for relief amid persistently high energy prices.

“Consumers had been calling for reprieve amid the worst energy crisis to have hit the globe in recent years, and Meralco responds with a third rate hike since March,” P4P said.

Article continues after this advertisement

READ: Meralco hikes rates on generation fees

FEATURED STORIES

NEWSINFO

NEWSINFO

NEWSINFO

The coalition argued that consumers continue to shoulder the rising costs of electricity generation, particularly from fossil fuel-based sources.

P4P is a national network of consumer groups, people’s organizations, and civic movements advocating for clean, affordable, and accessible energy.

On July 10, Meralco announced that its overall residential electricity rate increased by P0.3428 per kilowatt-hour (kWh) to P14.8261 per kWh in July from P14.4833 per kWh in June, primarily due to higher generation costs driven by high fuel prices and taxes.

The adjustment would add about P69 to the monthly bill of a household consuming 200 kWh.

Article continues after this advertisement

The company said the generation charge accounted for the largest share of the increase, rising by P0.1800 per kWh to P9.2504 per kWh, mainly because of higher fuel costs.

P4P described the increase as a “hard blow” for consumers, saying wages have remained stagnant while prices of basic goods continue to rise.

Article continues after this advertisement

“Every peso earned by ordinary workers is essential for medicine, food, and transportation. The minimum wage is already insufficient to meet the basic cost of living, and the burden of high electricity rates further drains the pockets of Filipino families,” said Leodegario “Ka Leody” De Guzman, president of Partido Lakas ng Masa.

De Guzman said the recurring rate hikes reflect structural problems in the country’s privatized power industry, arguing that increases in generation costs, taxes, and other pass-through charges continue to be passed on to consumers even as power companies post substantial profits.

P4P convenor Gerry Arances said Meralco customers may have received temporary relief through the suspension of disconnections until the end of the month, but the rising cost of electricity remains a major concern.

He warned that renewed tensions in the Middle East could further increase global fuel prices and urged regulators to end the automatic pass-through of fuel costs to consumers.

The coalition also renewed its call for stronger government intervention to shield consumers from volatile electricity prices and investigate reports of questionable billings.

Arances urged Meralco to address complaints from customers who have reported alleged irregularities in their electricity bills despite little or no increase in consumption.

“These bill disputes are not something that Meralco and regulatory bodies can just brush off as accidents. For a consumer already burdened by all sorts of economic woes, this is simply robbery in broad daylight,” he charged.

He added: “We cannot let this pass. It’s the interests of consumers that should first and foremost be protected amid this crisis.”

Meanwhile, Sen. Risa Hontiveros filed a Senate resolution seeking an investigation into the Energy Regulatory Commission’s (ERC) policies governing electricity bill disputes and power rate increases.

READ: Hontiveros seeks Senate probe into ERC policy on electric bill disputes

Hontiveros said the resolution was prompted by a growing number of reports from Metro Manila consumers alleging erroneous Meralco meter readings and irregular electricity billings.

Meralco, for its part, said customers with existing billing complaints are not required to settle the disputed amount while their cases are under review.

However, Hontiveros noted that the ERC has advised consumers disputing their bills to pay the charges under protest to avoid possible service disconnection pending the resolution of their complaints. She said the differing guidance has created confusion among consumers and highlighted the need for a Senate inquiry.

Your subscription could not be saved. Please try again.

Your subscription has been successful.

The senator also said the issue has become more pressing as consumers continue to absorb successive electricity rate increases implemented since February./coa