Consumer advocates and the Bayan Muna party-list are sounding the alarm over a massive “bill shock” affecting millions of Meralco customers this April and May 2026. The outcry follows a record-breaking rate hike that has pushed electricity costs to ₱14.3496 per kWh.
Bayan Muna Chairman Neri Colmenares has slammed the current situation as a form of “legalized robbery” being forced upon ordinary Filipino families.
The Burden of Dollar-Indexed Contracts
A central point of the protest is Meralco’s reliance on “dollar-denominated” power supply agreements. Colmenares argues that it is unacceptable for the public to bear the financial brunt of the peso’s depreciation against the dollar.
“Bakit ang taumbayan ang pinagbayad 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 pointed out.
The Injustice of VAT on ‘Lost’ Power
The group also highlighted the unfairness of the 12% Value-Added Tax (VAT) imposed on System Loss Charges. Colmenares likened the charge to paying a tax at the market for an item you never actually received.
“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?)
Sluggish Shift to Renewable Energy
While other distribution utilities in regions like Iloilo, Bohol, and Davao have managed to lower costs by tapping into local renewable sources, critics noted that Meralco remains heavily dependent on imported coal and natural gas.
“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,) he added.
Calls for Urgent Reform
Bayan Muna is demanding that Meralco and the government take the following steps to provide immediate relief to consumers:
- Renegotiate PSAs: Shift all Power Supply Agreements from “Dollar-indexed” to “Peso-denominated” to shield consumers from currency fluctuations.
- Tax Removal: Eliminate VAT on system loss and other pass-through charges.
- Government Subsidies: Utilize national funds to subsidize lifeline rates for low-income households rather than passing the cost on to regular consumers.
