Manila Electric Co. (Meralco) on Saturday expressed support for government and industry initiatives aimed at finding sustainable ways to lower electricity rates, while emphasizing the need for long-term solutions that ensure energy security and reliable power service.

In a statement, Meralco said it has consistently worked with the Department of Energy (DOE) and the Energy Regulatory Commission (ERC) to implement measures that help ease the burden on consumers and mitigate increases in power rates.

The power distributor noted that electricity prices in the Philippines reflect the actual cost of power generation, unlike in some neighboring countries where government subsidies help keep rates lower.

According to Meralco, a significant portion of electricity costs comes from generation charges, which are influenced by market conditions, fuel prices, supply availability, and foreign exchange movements.

The company also reiterated its commitment to transparency, noting that customer bills are unbundled to show the various components of electricity charges, including generation, transmission, system loss, taxes, and other government-mandated fees.

Meralco said most of these charges are pass-through costs that are remitted to power generators, transmission providers, and government agencies.

The company added that its distribution charge accounts for only about 12 percent, on average, of the total electricity bill paid by customers.

“Meralco’s distribution rate has not increased for more than 15 years despite year-on-year increases in the cost of basic goods and commodities brought about by inflation and the continued weakening of the peso against the US dollar,” Meralco Vice President and Head of Corporate Communications Joe Zaldarriaga said.

Despite maintaining its distribution rates, Meralco said it has continued investing in system modernization, reliability improvements, digitalization, and customer service enhancements.

The company also expressed its willingness to work with government agencies, regulators, lawmakers, and other stakeholders on policy measures designed to make electricity more affordable.

“Meralco remains open to constructive discussions and is willing to work with government, regulators, lawmakers, and stakeholders on measures that are fair, transparent, and supported by appropriate laws and regulatory mechanisms,” Zaldarriaga said.

He added that the company supports reforms that balance affordability with the need to ensure the continued delivery of safe, reliable, and stable electricity service for consumers.