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Manila Bulletin devider Philippines devider National devider Electricity bill shocks an unacceptable burden to Pinoys--Colmenares

Electricity bill shocks an unacceptable burden to Pinoys--Colmenares

Published May 6, 2026 07:09 pm

At A Glance

  • Former Bayan Muna Rep. Neri Colmenares condemns the passing of foreign exchange risks to consumers through dollar-denominated power contracts, saying families already burdened by rising costs should not shoulder peso depreciation.
  • He criticizes the 12 percent VAT on system loss charges, arguing that consumers unfairly pay for electricity they never use due to inefficiency or illegal connections.
(Unsplash)
(Unsplash)


Former Bayan Muna Party-list Rep. Neri Colmenares has amplified the condemnation of the electricity bill shocks that are being experienced by millions of customers in the current summer months.
According to the militant leader, it is unacceptable that consumers shoulder the burden every time the peso weakens against the dollar due to electric distribution companies' “dollar-denominated” contracts.
“Why are the people being made to pay for the peso’s depreciation?" Colmenares asked.
He says foreign exchange risk shouldn't be passed on to Filipino families especially those already struggling with the rising cost of rice and basic goods,
Colmenares also underscored what he described as the unjust imposition of the 12 percent value-added tax (VAT) on the system loss charge.
The former three-term congressman likened it to buying goods from the market, where consumers take something home in exchange for the tax they pay.
“In system loss, you pay 12 percent VAT—but what do you take home? Nothing. You’re paying for electricity you didn’t even use—electricity lost due to Meralco’s inefficiency or illegal connections that they should be resolving," explained the lawyer.
It’s not our fault—why are we the ones being charged?” Colmenares asked.
Critics also flagged Meralco’s slow transition to renewable energy (RE). While some distribution utilities in Iloilo, Bohol, and Davao are experiencing lower rates due to local and renewable energy sources, Meralco remains heavily dependent on imported natural gas and coal.
“That’s why every movement in the world market results in bill shock for consumers. This is the consequence of a monopoly reliant on foreign interests,” he added.
Bayan Muna--which is part of the broader Makabayan bloc--is urging Meralco to renegotiate all Power Supply Agreements (PSAs) with coal and gas plants to make them “peso-denominated” instead of “dollar-indexed".
The group also called for the removal of VAT on system loss and other pass-through charges, and for government funds to be used to subsidize lifeline rates instead of passing these costs on to regular consumers.

Related Tags

Neri Colmenares Electricity bills Makabayan Bayan Muna
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