Lacson seeks Senate probe into consumer 'bill shock', continued power rate hikes
At A Glance
- Senator Panfilo "Ping" Lacson has sought a Senate inquiry into the continuing increase in electricity rates and the "bill shock" that consumers experience due to unexplained charges, alleged irregularities in meter readings and the system losses that law-abiding customers are forced to shoulder.
Senator Panfilo "Ping" Lacson (Facebook)
Senator Panfilo “Ping” Lacson has sought a Senate inquiry into the continuing increase in electricity rates and the “bill shock” that consumers experience due to unexplained charges, alleged irregularities in meter readings and the system losses that law-abiding customers are forced to shoulder.
In filing Senate Resolution No. 511 on Monday, July 13, Lacson urged the appropriate Senate committee to look into these cases to strengthen transparency, accountability and consumer protection in the power industry.
“(While) access to affordable and reliable electricity is fundamental to promoting Filipinos’ welfare, national productivity and economic development…residential electricity rates in the Philippines are among the highest in Southeast Asia, ranking second in costs at approximately US$0.18 -US$0.23 per kilowatt-hour (kWh), next only to Singapore’s average of US $0.23 per kWh, thus, placing a disproportionate financial burden on Filipino families, workers and enterprises,” Lacson said in his resolution.
“While fluctuations in electricity prices may be attributed to supply constraints due to geopolitical tension, higher generation costs, foreign exchange rates, mandatory charges, and other market factors, it is incumbent upon the legislature to exercise its oversight function to determine whether existing regulatory mechanisms effectively protect consumers from excessive, unreasonable, or avoidable increases in electricity charges,” he said.
The senator pointed out that Section 9, Article II of the 1987 Constitution provides that the state shall promote a just and dynamic order that will “free the Filipino people from poverty through policies that provide, among others, a rising standard of living and improved quality of life for all.”
But over the past months, Lacson noted consumers of Meralco have reported “substantial and unexplained increases” in their electricity bills or “bill shock.”
He also cited reports that the Energy Regulatory Commission (ERC) authorized Meralco and four power generation companies last January to recover P31.34 billion in costs due to various changes in circumstances (CIC), which was expected to result in higher electricity rates starting March 2026.
Meralco, however, raised electricity rates in April by P0.5335 per kWh. While power rates declined in May, they again increased by P0.1488 per kWh in June. The power firm cited high wholesale electricity prices, rising fuel costs, and the depreciation of the peso to justify the rate hikes.
Overall, Meralco’s residential rate from January to July 2026 saw an increase from P13.2730 per kWh to P14.8261 per kWh.
However, Lacson said that beyond these increases consumers have raised concerns over alleged irregularities in meter readings, as well as costs associated with system loss charges, which cover technical and non-technical losses incurred in the transmission and distribution of electricity.In his resolution,
Lacson also noted that consumers have questioned the non-technical system loss charges, especially those arising from electricity pilferage through meter tampering, illegal connections and the use of numbers, “which are being covered by law-abiding and paying consumers.”
Other than this, he also said some advocates have proposed that system losses should not be passed on to consumers as this policy seems to unfairly reward operational inefficiency while giving distributors less incentive to strengthen measures against electricity pilferage.
In filing the resolution, Lacson said it necessary for the Senate to look into the matter warning that the high electricity costs place a disproportionate financial burden on Filipino families, workers and businesses.