Consumer advocates and the group Bayan Muna strongly condemned the “bill shock” experienced by millions of Meralco customers this April and May 2026, amidst record-high rates that hit ₱14.3496 per kWh.
Bayan Muna Chairman Neri Colmenares described the situation as a form of “legalized robbery” being shouldered by ordinary Filipinos.
According to Colmenares, it is unacceptable that consumers are the ones absorbing every depreciation of the peso against the dollar due to Meralco’s “dollar-denominated” contracts.
“Bakit ang taumbayan ang pinagbabayad ninyo sa paghina ng piso? Ang Meralco ay kumikita ng bilyon-bilyon, pero ang risk ng palitan ng dolyar ay ipinapasa sa mga pamilyang hindi na magkandaugaga sa taas ng presyo ng bigas at bilihin,” (Why are you making the people pay for the weakening of the peso? Meralco earns billions, but the risk of the dollar exchange is passed on to families who are already struggling to cope with the high price of rice and goods,) said Colmenares.
Colmenares also emphasized the unjust imposition of the 12% Value-Added Tax (VAT) on the System Loss Charge. He compared it to buying items at a market where the buyer takes home something in exchange for the tax paid.
“Sa system loss, nagbayad ka ng 12 percent VAT, pero anong inuwi mo? Wala. Bayad ito sa kuryenteng hindi mo naman ginamit, kuryenteng nawala dahil sa inefficiency ng Meralco o sa mga illegal connection na sila naman dapat ang rumeresolba. Hindi namin kasalanan, bakit kami ang sisingilin?” (With system loss, you paid 12 percent VAT, but what did you take home? Nothing. This is payment for electricity you didn’t even use, electricity lost due to Meralco’s inefficiency or illegal connections that they should be the ones resolving. It’s not our fault, so why charge us?) Colmenares asserted.
Critics also pointed out Meralco’s seemingly “snail-paced” transition to Renewable Energy (RE). While some distribution utilities in Iloilo, Bohol, and Davao are experiencing lower rates due to local and renewable sources, Meralco remains reliant on imported natural gas and coal.
“Sampung porsyento (10%) lang ang renewable energy ng Meralco. Ang natitira, imported na gas at coal na binabayaran sa dolyar. Kaya bawat kibot ng world market, bill shock ang hatid nila sa atin. Ito ang bunga ng pagiging monopolyong nakasandal sa dayuhang interes,” (Meralco’s renewable energy is only ten percent (10%). The rest is imported gas and coal paid for in dollars. So with every movement of the world market, they bring us bill shock. This is the result of being a monopoly leaning on foreign interests,) Colmenares added.
Bayan Muna is calling on Meralco to act and renegotiate all Power Supply Agreements (PSAs) with coal and gas plants so that payments in their contracts are “Peso-denominated” and not “Dollar-indexed.”
They also demand the removal of VAT on system loss and other pass-through charges, and for the government to use its funds for subsidies on lifeline rates instead of passing the cost onto the bills of regular consumers.
