Consumer advocates and the Bayan Muna party-list have launched a scathing critique of the “bill shock” hitting millions of Meralco customers this April and May 2026. The outcry comes as electricity rates hit a staggering record high of ₱14.3496 per kWh, a price point that has left many Filipino households struggling to keep the lights on.
Bayan Muna Chairman Neri Colmenares did not mince words, labeling the current billing system as a form of “legalized robbery” being forced upon the shoulders of ordinary citizens.
The Dollar Dilemma
Colmenares pointed to the “dollar-denominated” nature of Meralco’s contracts as a primary culprit. He argued that it is fundamentally unfair for consumers to act as a financial buffer for the company whenever the Philippine peso weakens against the US dollar.
“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,) Colmenares stated.
Taxation on “Ghost” Electricity
A major point of contention raised was the 12% Value-Added Tax (VAT) imposed on the System Loss Charge. Colmenares likened this to paying for goods at a market and leaving empty-handed.
“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?)
Related:
Electricity Bills: Meralco Up, Razon Utilities Down Ahead of Summer
The Renewable Energy Gap
While other regions like Iloilo, Bohol, and Davao are beginning to see the benefits of lower rates through local renewable sources, critics noted that Meralco’s transition remains sluggish. The utility giant continues to rely heavily on imported natural gas and coal, making bills volatile to international market swings.
“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.
Demands for Reform
Bayan Muna is now calling for urgent intervention, demanding that Meralco:
- Renegotiate Power Supply Agreements (PSAs) to be “Peso-denominated” rather than “Dollar-indexed.”
- Abolish VAT on system loss and other pass-through charges.
- Reallocate government funds toward subsidies for lifeline rates rather than passing those costs onto regular consumers.
