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Have you already received your May 2020 electric bill? I'm sure most of you could not believe the amount you are about to pay for your electricity consumption. Meralco was not able to do meter reading in March and April 2020 and had to rely on estimated consumption based on the average of your previous 3-month consumption. 

I'm sharing with you the latest Meralco Advisory to shed some light.

Meralco Advisory (June 1, 2020)















Where your money goes 


The money you pay does not all go to Meralco. There are other components that share with the amount charged to you. Also, Meralco does not earn from the pass-through charges, such as the generation and transmission charges. Payment for the generation charge goes to the power suppliers, while payment for the transmission charge goes to the National Grid Corporation of the Philippines (NGCP).



54% GOES TO GENERATION COMPANIES 

Generation charge is the largest component of the bill. It comprises the total of all costs charged by the different generation companies that provide Meralco with power supply. These include SMC Global Power, Aboitiz Power, DMCI, First Gen, AES, and EGCO. In special cases, this may include charges from the Wholesale Electricity Spot Market (WESM).

11% GOES TO NGCP

Transmission charges goes to National Grid Corporation of the Philippines. The power supply generated by the generation company will have to pass through the NGCP before distributing to the customers and therefore Meralco has to pay for the transmission services of NGCP.

18% GOES TO MERALCO

The only amount that Meralco receives for its services is the distribution charge. This is regulated by the Energy Regulatory Commission (ERC). The distribution charge decreased in 2014, became even lower in 2015, and has not changed since then.

12% GOES TO TAXES

The taxes collected by the government include Value Added Tax (VAT), Universal Charge and Local Franchise Tax

5% OTHER CHARGES

Other charges warranted by the government regulators to ensure the industry's viability are System Loss Charge, Subsidies and Feed-In Tariff Allowance (FiT-All).

Instead of each of these entities delivering bills to your doors and collecting payment, Meralco consolidates all charges in one electric bill. Then Meralco collects payment and pays the other companies and the government in behalf of its consumers.