Manila Electric Company (Meralco) clarified that items listed under the “Other Charges” and “Universal Charges & Subsidies” sections of monthly electricity bills are remitted directly to the government and do not constitute corporate earnings.

In an exclusive message to DAILY TRIBUNE, Meralco vice president and head of Corporate Communications Joe R. Zaldarriaga explained that the charges are government-mandated to fund specific public programs, countering claims circulating on social media.

“What you see are Senior Citizen Discount, Lifeline Subsidy, FIT-All, GEA-All and Universal Charges. These are government-mandated or public policy charges,” Zaldarriaga said.

“This means these are not earnings for Meralco. We are only collectors, and we immediately remit these charges to the proper agencies or the government,” he added.

Zaldarriaga said the costs are pass-through collections imposed under Philippine energy and social welfare laws.

The Senior Citizen Subsidy funds electricity discounts granted under Republic Act 9994 to qualified senior citizens with low monthly consumption.

Meantime, the Lifeline Subsidy, authorized under the Electric Power Industry Reform Act and expanded by Republic Act 11552, supports low-income households and is administered through the Power Sector Assets and Liabilities Management Corp. (PSALM).

“Lifeline has a charge of 1 centavo per kilowatt-hour, while the Senior Citizen Subsidy has a charge of 0.0001 centavo per kilowatt-hour,” Zaldarriaga said.

He added that universal charges fund government energy programs such as rural electrification, watershed rehabilitation, and management, as well as debt payments for the former National Power Corp. through PSALM.

Renewable energy-related charges include the FIT-All and the newer GEA-All, which finance incentive and procurement programs for solar, wind, hydro, and other renewable energy projects. These collections are remitted to the National Transmission Corp.

The clarification follows Meralco’s announcement of a slight reduction in electricity rates for May by P0.0151 per kilowatt-hour. This brings the overall rate for a typical household to P14.3345 per kWh from P14.3496 per kWh in April.

Meralco attributed the lower rate to mitigating measures approved by the Energy Regulatory Commission, which helped offset higher generation costs caused by elevated global fuel prices and peso depreciation.

“While our customers stand to benefit from relatively stable rates this May, we would like to advise them that their bills may still increase depending on their actual consumption, which usually rises during the summer months,” Zaldarriaga said during a 14 May media briefing.