In a direct challenge to the nation’s largest power distributor, Social Welfare Secretary Rex Gatchalian has not only debunked the “fake news” surrounding the April bill shock but has also ignited a debate on corporate accountability.

Gatchalian’s message is clear: the marginalized 4Ps (Pantawid Pamilyang Pilipino Program) beneficiaries are being used as scapegoats for systemic price hikes in electricity.

The Scapegoat Narrative

Following the sudden spike in electricity rates this April, rumors circulated that the burden of the “Lifeline Rate” discount—a subsidy for low-income users—was the primary cause of the bill shock for residential customers. Gatchalian was quick to shut down this narrative.

“Hindi 4Ps ang rason kung bakit lumaki ang pag singil noong April. Yung bill shock na yun nanggaling sa sarili nilang generation. Tumaas ang generation expense nila.”

(Translation: “4Ps is not the reason why billing increased this April. That bill shock came from their own generation. Their generation expenses went up.”)

The Math of Inequity

The DSWD provided figures to prove that the subsidy has a negligible impact on the average consumer. The “lifeline rate” accounts for a mere P0.40 centavos—less than half a centavo—of the total bill.

Gatchalian argued that 4Ps households consume very little power, typically limited to basic lighting and cooling.

“Napakaliit lang ng kinukonsumo ng 4Ps… To the most isang electric fan at ilang bumbilya. So hindi sila ang rason kung bakit sumipa ng ganun kalaki.”

(Translation: “The consumption of 4Ps [households] is very small… at most one electric fan and a few light bulbs. So they are not the reason why [the bill] spiked that significantly.”)

A Paradigm Shift: From Consumer to Corporate Burden

The most striking part of Gatchalian’s statement is his proposal to amend how these subsidies are funded. As the Senate prepares to revisit the Expanded Lifeline Rate Law, Gatchalian believes the cost should be shifted from the consumers to the utility provider itself.

“Sang ayon kami doon sa panukala, maliit lang ito dapat i-absorb na ng Meralco… biro mo, sa laki ng kanilang sinisingil, dapat sana sila mag-absorb nito. Parang CSR na nila.”

(Translation: “We agree with the proposal; this is a small amount that Meralco should absorb… given the scale of what they charge, they should be the ones absorbing this. It should be like their CSR.”)