Lawmakers Question Fairness Of Electricity Charges Funding Social Subsidies
- May 1, 2026
Table of Contents
The Senate is set to examine the structure and implementation of electricity subsidies after public backlash over higher monthly bills driven in part by so-called “pass-through” charges. Senate Resolution No. 375, filed by Senator Bam Aquino, calls for a comprehensive review of the design, targeting, and financing of subsidy-related charges under the Electric Power Industry Reform Act (EPIRA).
These charges, collected by distribution utilities and reflected in consumer bills, fund programs such as the lifeline rate subsidy for low-income households and discounts for senior citizens. While intended to provide social protection, critics argue that the current system shifts the burden onto non-beneficiary consumers, including the middle class.
Aquino emphasized that the objective is not to remove subsidies but to ensure they are “well-targeted, fiscally sustainable, and equitably financed.” He suggested that the national government should shoulder part, if not all, of the subsidy costs rather than passing them on to electricity users.
Estimates indicate these charges can add several centavos per kilowatt-hour, translating to roughly ₱20 to ₱100 in additional monthly costs for non-beneficiaries.
Policy Overhaul
Calls for reform have gained support from both chambers of Congress. Aquino stressed the need to scrutinize the collection system to prevent further strain on households already affected by rising prices.
“Busisiin natin ang karagdagang bayad na ito… Hindi na dapat dagdagan ang gastusin ng taumbayan kung may pera naman ang gobyerno para sa ayuda,” he said (Let’s examine these additional charges… Consumers should not bear extra costs if the government has funds for assistance).
Akbayan Rep. Chel Diokno echoed the concern, arguing that charging these subsidies to consumers is inappropriate amid ongoing economic pressures. “Hindi tama na sisingilin ito sa consumers… lalo ngayong mataas ang presyo ng bilihin at produktong petrolyo,” he said (It’s not right to charge this to consumers, especially now that prices of goods and petroleum products are high).
Senate oversight committee chairman on crisis response, Senator Sherwin Gatchalian, stressed the importance of maintaining support for low-income households. He noted that lifeline assistance, which is equivalent to about 50 kWh per household, provides only a minimal amount of electricity for basic needs but remains critical for vulnerable families.
ERC Defends Existing Framework
Amid the growing criticism, the Energy Regulatory Commission (ERC) has defended the legality and necessity of the charges. The agency said all bill components, including lifeline subsidies, senior citizen discounts, and renewable energy incentives, are mandated by existing laws and policies.
According to the ERC, distribution utilities like Manila Electric Co. (Meralco) do not profit from these charges, as they merely act as collecting agents. Funds are remitted to designated programs, including support for marginalized consumers, missionary electrification in off-grid areas, and renewable energy development through mechanisms like the feed-in tariff.
“None of them profit from these charges as they are pass-through costs,” the ERC said, adding that it is implementing policies enacted by Congress and ensuring only “just and reasonable costs” are recovered.
Many of these charges have been in place for years. The lifeline subsidy dates back to EPIRA’s enactment in 2001, while the senior citizen discount and feed-in tariff mechanisms have been implemented since 2010.
Rising Rates Under Scrutiny
The debate comes as Meralco raised electricity rates by ₱0.53 per kWh in April 2026, increasing a typical household’s monthly bill by about ₱106. Additional approved charges, including recovery costs for power plant operations, are expected to further impact rates in the coming months.
Consumer frustration has been compounded by the cumulative effect of multiple bill components, including universal charges for electrification and environmental programs, as well as renewable energy incentives.
At the same time, proposals to expand senior citizen discounts from 5 percent to as much as 15 percent and increasing the consumption threshold have raised concerns about further cost burdens on other consumers.
Proposed Additional Subsidy
The issue of electricity pricing has also reached the executive branch. Malacañang signaled plans to push for an “Uplift” economic package aimed at cushioning the impact of rising energy and commodity prices. The proposal includes tapping unused government funds to support targeted assistance programs.
As the Senate prepares to convene hearings, policymakers face the challenge of balancing social protection with equitable cost distribution. The outcome of the review could determine whether electricity subsidies remain funded through consumer bills or transition toward greater government support.
Source:
https://tribune.net.ph/2026/04/28/senate-reviewing-power-subsidy-charges
https://newsinfo.inquirer.net/2219860/erc-meralco-bill-shock-just-follows-the-law
