Lifeline Subsidy and Discount

1. Why is Meralco charging me for Lifeline and what is this for?

The Lifeline subsidy rate is mandated by the government (Congress, DOE, DSWD and ERC) to provide assistance to 4Ps beneficiaries and certified-marginalized customers through bill discounts based on electricity consumption:

  • 0–50 kWh: 100% discount
  • 51–70 kWh: 35% discount
  • 71–100 kWh: 20% discount

Currently, this amounts to P0.01/kWh to keep it minimal for the non-lifeline customers (with consumption of 100 kWh and above) who are being charged for it. Even customers registered for the lifeline discount will not receive the discount if their monthly consumption exceeds 100 kWh; instead, they will be charged the lifeline subsidy.

Portion of the collected amount goes to Meralco's lifeline customers as bill discount. The rest is remitted to the Power Sector Assets and Liabilities Management Corporation (PSALM).

Meralco serves as a collecting agent of this pass-through charge but does not earn from it. This is implemented not just by Meralco, but by all distribution utilities and electric cooperatives nationwide.

This is not a new charge. Meralco has been collecting this since 2003.

2. What is the lifeline discount?

This is the discount rate given to 4Ps beneficiaries and certified-marginalized customers who are financially unable to pay their electricity bills at full cost.

Qualified customers get discounts set by the Energy Regulatory Commission (ERC), based on electricity consumption:

  • 0–50 kWh: 100% discount
  • 51–70 kWh: 35% discount
  • 71–100 kWh: 20% discount

3. Who are qualified for the lifeline program?

Customers who meet any of the following criteria are qualified for the lifeline program:

  • Beneficiaries of the "4Ps Act" (Pantawid Pamilyang Pilipino Program) under Republic Act No. 11310.
  • Customers considered to be living below the poverty threshold as certified by the Local Social Welfare and Development Office.

4. I am a 4Ps beneficiary/living below poverty threshold. Why am I not getting the discount?

Customers whose name and address in the 4Ps list matches their account details in Meralco are automatically given a lifeline discount. Otherwise, you need to apply to avail of the lifeline discount.

Please visit the nearest Meralco Business Center to submit the following requirements:

For 4Ps (Pantawid Pamilyang Pilipino Program) beneficiaries whose name and address in the 4Ps list do not match the name and address in their Meralco account:

  • Duly accomplished Lifeline Rate Application form
  • Most recent Meralco bill (The barangay indicated in the Meralco bill must be the same as the one in DSWD's Certified List of 4Ps Beneficiaries)
  • 4Ps ID (If 4Ps ID is lost/unavailable, other government-issued IDs may be provided)

For customers who are not beneficiaries of 4Ps but are living below the poverty threshold as certified by the local Social Welfare and Development office:

  • Duly accomplished Lifeline Rate Application form
  • Most recent Meralco bill (The barangay indicated in the Meralco bill must be the same as the one in DSWD's Certified List of 4Ps Beneficiaries)
  • A Certification from the local Social Welfare and Development Office (SWDO) issued within the last six (6) months showing that his or her family income is below the poverty threshold set by the Philippine Statistics Authority (PSA) and applicable at the time of his or her application
  • Any valid government-issued ID reflecting the address of the registered customer and his or her signature, such as: Police Clearance, Postal ID, PRC License ID, Senior Citizen ID, SSS ID, TIN ID, Unified Multipurpose ID, Phil ID

5. Will I automatically receive the Lifeline discount after I apply?

The Lifeline discount will only be applied if the kWh consumption for the month is within the consumption threshold of 100 kWh and below. If your consumption for the month is above 100 kWh, your bill for that month will not be provided a discount under the Lifeline program. Instead, you will be charged with lifeline subsidy.

6. It's unfair for people like us to see 4Ps with aircon and ref. Why do I need to pay for their discount?

The Lifeline discount will only be applied to the bills of 4Ps customers if the kWh consumption for the month is within the consumption threshold of 100 kWh and below. If they have aircon and ref, their consumption for the month will be above 100 kWh and they will not be provided a discount under the Lifeline program. They will be charged with lifeline subsidy.

Meralco defers to the wisdom of the government in the implementation of the charges. All the fees charged to the customer are subject to the approval and oversight of the Energy Regulatory Commission.

Senior Citizen Subsidy and Discount

1. Why is Meralco charging me for Senior Citizen and what is this for?

The Senior Citizen subsidy charge is mandated by the government (Congress and ERC) to cover the discount on electricity being given to:

  • Senior citizens whose bill is under their name and consuming 100 kWh & below: 5% discount
  • DSWD-accredited senior citizen centers: 50% discount

Currently, this amounts to P0.0001/kWh, and is being charged to all other customers who are not being given the Senior Citizen discount (with consumption of 100 kWh and above). Even customers registered for the senior citizen discount will not receive the discount if their monthly consumption exceeds 100 kWh; instead, they will be charged the senior citizen subsidy.

Meralco serves as a collector of this pass-through charge but does not earn from it. This is implemented not just by Meralco, but by all distribution utilities and electric cooperatives nationwide.

This is not a new charge. Meralco has been collecting this since 2011.

2. What is the senior citizen discount?

It is a discount on electricity being given to:

  • Senior citizens whose bill is under their name and consuming 100 kWh & below: 5% discount
  • DSWD-accredited senior citizen centers: 50% discount

3. I am a senior citizen but I don't have a discount. How do I avail?

To avail of the senior citizen discount:

  • Apply online at: https://meralco.my.site.com/SCDA/s/
  • Upload the following requirements:
    • Filipino Senior Citizen ID
    • Recent Meralco bill under the senior citizen's name
    • Barangay certificate or notarized affidavit of two (2) disinterested persons who have known the senior citizen for at least one (1) year

4. I am a senior citizen but instead of getting a discount, why am I being charged for it? I am also being charged for Lifeline Subsidy.

If you are seeing charges for Senior Citizen Subsidy or Lifeline Subsidy, it is because the government has mandated to help fund these discounts by collecting charges from non-Lifeline and non-Senior Citizen customers who are not getting these discounts.

Even customers registered for the senior citizen discount will not receive the discount if their monthly consumption exceeds 100 kWh; instead, they will be charged the senior citizen subsidy.

The discounts are not automatic. You will only receive it if you have applied and been approved for it, and if your consumption for the month does not exceed 100 kWh.

System Loss

1. Why is Meralco charging me for System Loss and what is this for?

The System Loss charge is allowed by the government to recover the cost of power lost due to technical and non-technical reasons.

The ERC has set a maximum level of system loss that distribution utilities like Meralco can collect. Losses beyond this level cannot be passed on to customers, and is shouldered by the distribution utility.

This charge is part of the generation and transmission charges, which are remitted to power generation companies and the NGCP.

Meralco serves as a collector of this pass-through charge but does not earn from it. This is implemented not just by Meralco, but by all distribution utilities and electric cooperatives nationwide.

This is not a new charge.

2. Why is there System Loss?

Because electricity travels far distances, from power plants to our homes, energy is lost along the way. System loss is the difference between electricity generated by power plants and electricity consumed by end-users.

We assure you that Meralco implements all efforts possible to minimize both technical and non-technical system losses. Any amount recovered from such losses are given back to customers in the form of reduction in generation charge.

There are technical system losses due to:

  • Electricity flowing through wires, which generates heat
  • Power passing through multiple transformers
  • Voltage and stability concerns in the power system also cause minor losses

There are also non-technical system losses, due to:

  • Electricity theft
  • Illegal connections

The ERC has set a maximum level of system loss that distribution utilities like Meralco can collect. Losses beyond this level cannot be passed on to customers, and is shouldered by the distribution utility.

3. Why are you charging me for losses due to electricity theft or illegal connections? Why don't you charge it to the power pilferers?

We understand your frustration. We assure you that Meralco implements all efforts possible to minimize system losses.

Meralco is only allowed to collect within a maximum level set by the ERC. Losses beyond this level cannot be passed on to customers, and is shouldered by the distribution utility.

Any amount recovered from power pilferers are given back to customers in the form of reduction in the generation charge.

Government Taxes

1. Why is Meralco charging me for Government Taxes and what is this for?

The charge for Government Taxes is mandated by the government. It covers the following:

  • Real Property Tax and Local Franchise Tax, which go to LGUs
  • Value Added Tax and Energy Tax (for residential customers consuming more than 650 kWh), which goes to the National Government

Meralco serves as a collector of this pass-through charge but does not earn from it. This is implemented not just by Meralco, but by all distribution utilities and electric cooperatives nationwide.

This is not a new charge.

2. Shouldn't Meralco pay for the taxes? Why is it being charged to me?

Taxes are charged to customers as mandated by existing laws and in accordance with ERC regulations.

Universal Charges

1. Why is Meralco charging me for Universal Charges and what is this for?

The Universal Charges are mandated by the government (Congress and ERC) to cover the following:

  • Missionary Electrification: funds electricity service in remote or off-grid communities that are not connected to the national grid transmission system, and are difficult or costly to serve
  • Environmental Charge: a fixed charge of P0.0025/kWh, used for watershed rehabilitation and management
  • NPC stranded debts: covers the unpaid financial obligations of the National Power Corporation

Meralco serves as a collector of these pass-through charges but does not earn from it. This is implemented not just by Meralco, but by all distribution utilities and electric cooperatives nationwide. This charge is remitted to the Power Sector Asset and Liabilities Management (PSALM) Corp.

This is not a new charge. Meralco has been collecting this since 2003.

FiT-All

1. Why is Meralco charging me for FiT-All and what is this for?

The charge for Feed-in Tariff Allowance (FiT-All) is mandated by the government to support the development of renewable energy projects under the Feed-in Tariff (FiT) Program.

FIT-All rate is set annually by the ERC. This is a pass-through charge collected by Distribution Utilities, such as Meralco, Retail Electricity Suppliers (RES), and the National Grid Corporation of the Philippines (NGCP) and is remitted to the National Transmission Corporation (TransCo).

Meralco serves as a collector of this pass-through charge and does not earn from it.

This is not a new charge. Meralco has been collecting this since 2015.

GEA-All

1. Why is Meralco charging me for GEA-All and what is this for?

The charge for Green Energy Auction Allowance (GEA-All) is mandated by the government (Congress, DOE, and ERC) to fund the development of renewable energy projects like solar, wind, and hydro. It supports the Green Energy Auction Program (GEAP), a government program where renewable energy projects are selected through competitive bidding to ensure the lowest possible cost for customers.

Currently, GEA-All is being charged at PhP0.0371/kWh. This is a pass-through charge collected by Distribution Utilities, such as Meralco, Retail Electricity Suppliers (RES), and the National Grid Corporation of the Philippines (NGCP) to be remitted to the National Transmission Corporation (TransCo).

Meralco serves as a collector of this pass-through charge but does not earn from it.

This is a new charge that Meralco started collecting in January 2026.

Bill Charges

1. Why are there so many charges in my bill? Why is Meralco charging me for all of these?

The Electric Power Industry Reform Act (EPIRA) of 2003 requires the unbundling or breakdown of electricity rates so customers can:

  • See clearly where their payment goes, as each charge corresponds to a specific service or program
  • Ensure that government-mandated charges are applied correctly

All charges reflected in the bill have a regulatory basis — either mandated by the government or through ERC rules. Meralco does not collect any charge without a regulatory basis.

Only 12% of your bill goes to Meralco for the delivery of electricity and customer service. Meralco has not increased its charges since 2015.

The 88% are pass-through charges that Meralco collects but does not earn from:

  • 64%: Generation charge — covers the cost of power purchased from suppliers. The ERC ensures Meralco sources electricity at the lowest possible cost.
  • 11%: Taxes, subsidies and other charges — remitted to the government and other accredited agencies
  • 8%: Transmission charge — covers the cost of delivering electricity from power plants to Meralco. Remitted to the NGCP.
  • 5%: System loss — covers losses due to technical and non-technical factors. Regulated and capped by the government. Remitted to power generation companies and the NGCP.

These charges are implemented not just by Meralco, but by all distribution utilities and electric cooperatives nationwide. These charges are not new. Meralco has been collecting these for many years.

2. Does Meralco earn from these pass-through charges?

Meralco only collects these pass-through charges but does not earn from them:

  • Generation charge — remitted to power generators
  • Taxes, subsidies and other charges — remitted to the government and other accredited agencies
  • Transmission charge — remitted to the NGCP
  • System loss — regulated and capped by the government. Remitted to power generation companies and the NGCP.

These charges are implemented not just by Meralco, but by all distribution utilities and electric cooperatives nationwide. These charges are not new. Meralco has been collecting these for many years.

3. Shouldn't the government pay for these pass-through charges? Why are these being charged to me?

Meralco defers to the wisdom of the government in the implementation of the charges. All the fees charged to the customer are subject to the approval and oversight of the Energy Regulatory Commission.

These pass-through charges:

  • Are government-mandated
  • Don't go to Meralco
  • Are not unique to Meralco
  • Are not new charges

Meralco does not collect any charge without a regulatory basis.

4. Why do electricity rates keep going up?

Electricity rates move when the different components of your bill change.

Generation charge, which makes up 64% of your bill, changes monthly depending on:

  • Global fuel prices (such as coal, gas, and oil)
  • Supply and demand in the power market
  • Availability of power plants
  • Forex

Because it is the largest portion, any movement in the generation charge can significantly impact your total bill.

Increases in the Transmission Charge, which makes up 8% of your bill, can also contribute to movement in rates.

All charges reflected in the bill have a regulatory basis — either mandated by the government or through ERC rules. Meralco does not collect any charge without a regulatory basis.

5. Why is Meralco's rate so high? You're a big company — shouldn't you benefit from economies of scale and charge less?

Meralco's distribution charge is regulated by the Energy Regulatory Commission (ERC). The ERC sets a cap on what distribution utilities can charge, and this rate goes through a rigorous review and approval process before it can be implemented. Meralco cannot raise its distribution charge on its own.

In fact, Meralco's distribution charge did not increase since 2015, even as the cost of operations, materials, and labor has increased over the years.

Only 12% of your bill goes to Meralco for the delivery of electricity and customer service. The remaining 88% are pass-through charges that Meralco collects but does not earn from:

  • 64%: Generation charge — remitted to power generators
  • 11%: Taxes, subsidies and other charges — remitted to the government and accredited agencies
  • 8%: Transmission charge — remitted to the NGCP
  • 5%: System loss — regulated and capped by the government, remitted to power generation companies and the NGCP

When customers see higher bills, the increase is most often coming from these pass-through components, not from Meralco's distribution charge. Meralco does not collect any charge without a regulatory basis.

6. Can Meralco defer the collection of some of these charges to help its customers?

The collection of the charges in the bill is governed by the rules of the ERC. Any decision to defer these charges should be based on the direction of the ERC.

Only 12% of your bill goes to Meralco for the delivery of electricity and customer service. The remaining 88% are pass-through charges that Meralco collects but does not earn from:

  • 64%: Generation charge — remitted to power generators
  • 11%: Taxes, subsidies and other charges — remitted to the government and accredited agencies
  • 8%: Transmission charge — remitted to the NGCP
  • 5%: System loss — regulated and capped by the government, remitted to power generation companies and the NGCP

These charges must be remitted on time to the appropriate entities. Otherwise, Meralco would have to shoulder the cost.

7. My bill doubled/tripled this month even if my consumption did not change. What caused the increase?

Your bill may have increased due to an increase of P0.53 per kilowatt-hour in generation charge in April, which makes up 64% of your bill. With the depreciation of the peso versus the dollar and with most of the generation cost paid in dollars, this resulted in higher generation charges.

Thus, even if your consumption remains the same, an increase in rates will result in a higher bill.

And since it's summer, cooling appliances such as air conditioners and electric fans are used longer and refs are opened more frequently. Many employees have also switched to a work-from-home set-up. These may have contributed to higher electricity consumption. You may check the consumption chart in your bill to compare your consumption with the previous month and the same period last year.

8. We only added an aircon because of the heat, but why is my bill too high?

Adding even just one aircon unit can increase your consumption if:

  • It runs for several hours a day or overnight
  • The temperature is set very low
  • The unit is not energy-efficient or properly maintained

Also, during summer, aircon compressors work harder and run longer to keep the room cool, which increases electricity consumption even further.

And with the increase in generation charge in April, the biggest component of your bill, this can significantly increase your total bill.

You may check the consumption chart in your bill to see how your usage has changed compared to previous months.

9. My bill is too high/I think my bill is incorrect. Are you sure the meter reading is correct? Or was this estimated?

We assure you that the meter reading is correct. You may check your bill for your actual consumption based on your meter reading and compare it with your consumption last month or with the same month last year.

If you check the chart in your bill you can see that consumption usually increases during summer months, which is why bills during this time are higher.

If you still have concerns about your meter reading, you may reach us through any of our channels.

10. Meralco's charges should be audited. The government should step in.

All distribution utilities like Meralco are highly regulated. All charges reflected in the bill have a regulatory basis — either mandated by the government or through ERC rules.

Implementation of these charges is also subject to the review of ERC. Meralco does not collect any charge without a regulatory basis.

11. Shouldn't the government be the one covering these charges since these are their projects and programs?

Meralco defers to the wisdom of the government in the implementation of the charges. All the fees charged to the customer are subject to the approval and oversight of the Energy Regulatory Commission.

12. Our bill increased this month despite our efforts to implement energy-saving measures. What is the cause of this?

Your bill may have increased due to an increase of P0.53 per kilowatt-hour in generation charge in April, which makes up 64% of your bill. With the depreciation of the peso versus the dollar and with most of the generation cost paid in dollars, this resulted in higher generation charges.

Thus, even if you implemented energy-saving efforts, an increase in generation charge will result in a higher bill.

And since it's summer, cooling appliances such as air conditioners and electric fans are used longer and refs are opened more frequently. Many employees have also switched to a work-from-home set-up. These may have contributed to higher electricity consumption. You may check the consumption chart in your bill to compare your consumption with the previous month and the same period last year.

13. With the refund of P14.17B announced by the ERC, can we expect lower electricity bills in May?

Meralco will comply with the higher average refund rate of P0.2511/kWh, which will be reflected in the bills of all customers under "AWAT (Refund)/Collect", starting May 2026. This may help offset possible increases in May driven by higher fuel prices.

14. What is an Annual Update of Bill Deposit (AUBD)?

The Bill Deposit is an amount required from customers of distribution utilities as a guarantee for payment of electric bills. This is equivalent to their average bill for the past 12 months. This is updated annually and earns interest at a rate prescribed by ERC.

If the bill deposit previously paid is higher than the average bill for the past 12 months, we refund the difference. But if the bill deposit previously paid is lower than the average bill for the past 12 months, we collect the difference in 12 monthly installments.

15. I am only a tenant and I just moved in recently. Why are there so many charges?

The Electric Power Industry Reform Act (EPIRA) of 2003 requires the unbundling or breakdown of electricity rates so customers can:

  • See clearly where their payment goes, as each charge corresponds to a specific service or program
  • Ensure that government-mandated charges are applied correctly

All customers are required to pay these charges. All charges reflected in the bill have a regulatory basis — either mandated by the government or through ERC rules. Meralco does not collect any charge without a regulatory basis.

These charges are implemented not just by Meralco, but by all distribution utilities and electric cooperatives nationwide.

16. I am not a high-consuming household. I do not want to be included in paying these charges.

All customers are required to pay these charges. All charges reflected in the bill have a regulatory basis — either mandated by the government or through ERC rules. Meralco does not collect any charge without a regulatory basis.

These charges are implemented not just by Meralco, but by all distribution utilities and electric cooperatives nationwide.