Meralco Bills Keep Climbing — And Consumers Want Answers
Filipino households are bracing for another month of elevated electricity costs as the Manila Electric Company (Meralco) has posted back-to-back rate increases in early 2026 — and growing public frustration is now targeting not just global fuel prices, but a government subsidy program that may be quietly shifting costs onto ordinary subscribers.
Meralco raised its residential rate by P0.6427 per kWh in March 2026, bringing the typical household rate to P13.8161 per kWh — an increase of roughly P129 for consumers using 200 kWh a month. April brought yet another hike: P0.5335 per kWh, pushing rates to P14.3496 per kWh, or an additional P107 per typical household.
In less than two months, the average Meralco subscriber has absorbed over P230 in added electricity costs. The question many are now asking: where exactly is all this money going?
The 4Ps Free Electricity Program — and the Cross-Subsidy Question
In late 2025 and into 2026, President Ferdinand "Bongbong" Marcos Jr. announced the automatic enrollment of Pantawid Pamilyang Pilipino Program (4Ps) beneficiaries into the Lifeline Rate Subsidy Program (LRSP). Under the scheme, qualifying low-income households — estimated at 3 to 4 million families — receive a 100% discount on electricity bills if their monthly consumption stays at or below 50 kWh.
Meralco and other distribution utilities are reimbursed for the subsidized bills through the LRSP, which is funded through a cross-subsidy mechanism mandated under the Electric Power Industry Reform Act of 2001 (EPIRA). Non-lifeline consumers — essentially, everyone who consumes more than the lifeline threshold — contribute a uniform charge of one centavo (₱0.01) per kWh to a fund managed by the Power Sector Assets and Liabilities Management Corporation (PSALM).
On paper, the mechanism sounds modest. But consumer advocates and ordinary subscribers are now raising serious questions: Is one centavo per kWh truly sufficient to cover the cost of free electricity for millions of households? And if not — who is making up the difference?
Allegations of Hidden Cost-Shifting
Online forums, consumer groups, and social media have been flooded with complaints from Meralco subscribers claiming their bills have risen sharply since the 4Ps free electricity program kicked in for the April billing cycle (covering March consumption).
While Meralco has attributed the increases to higher ancillary service charges from the National Grid Corporation of the Philippines (NGCP) and a weakening peso — the exchange rate reached P60.748 per dollar in March — some consumer advocates are not convinced the explanation is complete.
"Hindi po sapat ang paliwanag. Bakit ngayon pa lang tumaas nang ganito kabilis ang aming bayad sa kuryente?" one consumer advocate said, echoing the sentiment of thousands of subscribers who claim their bills have increased by far more than what official rate hike announcements would suggest.
The allegation, which has not been officially confirmed or denied by the Energy Regulatory Commission (ERC) or PSALM, is that the cost of providing zero-peso electricity bills to millions of 4Ps households is being quietly redistributed to non-subsidized consumers — whether through the official cross-subsidy mechanism, through accounting adjustments within the generation or transmission charges, or through a combination of both.
The ERC's Expanding Lifeline Coverage
Adding fuel to the fire, the ERC in February 2026 announced an expansion of lifeline rate discounts for low-income power users — widening the pool of beneficiaries and deepening the subsidies available to them. While the move has been praised by welfare groups, it has intensified concerns among middle-income consumers about the true cost of the program and how it is financed.
ERC has not released a detailed breakdown of how the expanded LRSP is being funded beyond the ₱0.01/kWh uniform lifeline rate, nor has it clarified whether distribution utilities like Meralco are being fully reimbursed or are absorbing any portion of the subsidy cost.
What Needs to Happen
The Department of Energy (DOE), ERC, and PSALM owe the public a transparent, line-item accounting of the LRSP's finances — including total subsidy disbursements, total collections from the cross-subsidy charge, and any gap between the two.
If the one-centavo-per-kWh cross-subsidy is insufficient to cover the expanded program's costs, Congress and the public deserve to know how that gap is being closed — and whether ordinary consumers are, in effect, silently funding free electricity for 4Ps beneficiaries through other components of their monthly bills.
As it stands, millions of Filipino households are watching their electricity bills climb month after month, with no clear explanation beyond boilerplate references to fuel prices and the peso. That is not accountability. That is opacity — and it demands scrutiny.
Pulpulitiko is seeking comment from the Energy Regulatory Commission, the Department of Energy, PSALM, and Meralco on the specific financing of the expanded Lifeline Rate Subsidy Program. This story will be updated as responses are received.
