FAQ
Understanding your electricity bill
The Unbundled Charges in our Monthly Electric Bill
1. What is Generation Charge?
This is the cost of generating electricity on a per kilowatt hour basis that comes from the National Power Corporation and from the independent power producers of a distribution utility, like MERALCO and electric cooperatives.
2. What is Transmission Charge?
This is the cost of transporting electricity from the generating plants to the distribution system of a distribution utility (DU). This charge goes to the National Transmission Company (TransCo).
3. What is Systems Loss Charge?
This represents both the loss of electricity in the transmission system and in the distribution system. In the distribution system, this loss consists of the technical, non-technical and company use of a distribution utility. The Energy Regulatory Commission has set this at 9.5% for private distribution utilities as provided for under Republic Act (R.A.) 7832.
4. What is Distribution Charge?
This is the cost associated with the maintenance, upgrading, and expansion of the distribution system of a Distribution Utility.
5. What is Supply / Customer Charge?
This cost represents the cost of billing preparation, collection and various customer-related services.
6. Metering Charge?
This cost covers recovery of the cost of the meter and its maintenance on a per kilowatt-hour (kWh) basis.
7. Metering Charge
This cost covers the reading of the consumption in kWh as reflected in the meter.
8. What is Lifeline Subsidy Discount?
While R.A. 9136 provides that inter-class subsidies are removed, it separately includes a lifeline rate applicable to marginalized or low-income electricity users. The discount is applicable only to the generation, transmission, distribution, supply, metering and systems loss charges.
9. What is Lifeline Rate Subsidy?
This will cover the aid (subsidy) given to marginalized (Lifeline Rate) customers.
10. What is Currency Exchange Rate Adjustment (CERA)?
This is the recovery of the increase in principal payments of foreign denominated loans that may be brought about by the peso devaluation.
11. What is Power Act Reduction?
This refers to the discount of P030/kWh on the consumption of residential customers only from the electricity sourced by a DU from the NPC. This took effect upon the effectivity of R.A. 9136.
12. What is Power Act Reduction?
Refers to 2% of gross revenue remitted to the national government as national franchise tax.
13. What is Local Franchise Tax?
A range of 0.05% to 0.75% of gross revenue goes to local government as national franchise tax.
14. What is Universal Charge?
It is a non-by passable charge determined, fixed and approved by the Energy Regulatory Commission to be imposed on all electricity end-users. This is remitted to the Power Sector Assets and Liabilities Management (PSALM), owned and controlled by the government. This would include:
1.Stranded costs/contracts of NPC. Payment for the NPC debts after sale of its generating assets in excess of the amount assumed by the National Government.
2.Missionary Electrification. R.A. 9136 mandates NPC to carry on with its missionary function of providing electricity to non-viable, far-flung areas in the countryside even after its privatization.
3.Environmental Charge. The amount of P0.0025 per kilowatt hour shall be collected from all end users. This environmental fund will be managed by NPC, to be used solely for watershed rehabilitation and management.
4.Tax Equalization. It is the equalization of the taxes and royalties applied to indigenous or renewable source of energy vis-a-vis imported energy fuels.
5.Stranded Costs/Contracts of Utilities. This refers to the distribution utilities' losses in value of generating assets and contracts approved by the ERB before December 31, 2000 as a consequence of industry deregulation.
15. What is Local Franchise Tax Recovery?
This is the computed amount to recover the local franchise tax imposed by the local government in your city or municipality from 1994-2000, which was not passed on the consumers.
16. What is Surcharge?
This amount represents two percent (2%) of previous unpaid bills.
Meralco's Residential Rates
Electricity Industry
| GOVERNMENT AGENCIES |
|---|
| DOE | Department of Energy |
| ERC | Energy Regulatory Board |
| JCPC | Joint Congressional Power Commission |
| NEA | National Electrification Administration |
| INDUSTRY PLAYERS |
|---|
| WESM | Wholesale Electricity Spot Market |
| NPC | National Power Corporation |
| PSALM | Power Assets and Liabilities Management Corporation |
| TRANSCO | National Transmission Company |
| GENCOs | Generation Companies |
| SPUG | Small Power Utilities Group |
| DUs | Distribution Utilities |
| PDUs | Private Distribution Utilities |
| ECs | Electric Cooperatives |
| MU | Municipal Utilities |
| LIST OF PRIVATE DISTRIBUTION UTILITIES (PDUs) |
|---|
| BELS | Bauan Electric Light System |
| BLCI | Bohol Light Co., Inc. |
| CEDC | Clark Electric Distribution Corporation |
| CELCO | Camotes Island Electric |
| CELCOR | Cabanatuan Electric Corporation |
| CEPALCO | Cagayan Electric Power and Light Co., Inc. |
| COLIGHT | Cotabato Electric Light System |
| DECORP | Dagupan Electric Corporation |
| DLPC | Davao Light and Power Co., Inc. |
| IEEC | Ibaan Electric and Engineering Corpporation |
| ILPI | Iligan Electric Light and Power Company, Inc. |
| LUECO | La Union Electric Company, Inc. |
| MECO | Mactan Electric Company, Inc. |
| MERALCO | Manila Electric Company |
| PECO | Panay Electric Co., Inc. |
| SFELAPCO | San Fernando Electric Light and Power Co., Inc. |
| SUBIC ENER. | Subic Enerzone Company |
| TEI | Tarlac Electric, Inc. |
| VECO | Visayan Electric Company |
| LIST OF MUNICIPAL UTILITY/ies (MUs) |
|---|
| PUD | Public Utilities Department - Olongapo City |
| LIST OF ELECTRIC COOPERATIVES (ECs) |
|---|
| ABRECO | Abra Electric Cooperative, Inc. |
| AEC | Angeles Electric Cooperative, Inc. |
| AKELCO | Aklan Electric Cooperative, Inc. |
| ALECO | Albay Electric Cooperative, Inc. |
| ANECO | Agusan Del Norte Electric Cooperative, Inc. |
| ANTECO | Antique Electric Cooperative, Inc. |
| ASELCO | Agusan Del Sur Electric Cooperative, Inc. |
| AURELCO | Aurora Electric Cooperative, Inc. |
| BANELCO | Bantayan Electric Cooperative, Inc. |
| BASELCO | Basilan Electric Cooperative, Inc. |
| BATANELCO | Batanes Electric Cooperative, Inc. |
| BATELEC I | Batangas I Electric Cooperative, Inc. |
| BATELEC II | Batangas II Electric Cooperative, Inc. |
| BENECO | Benguet Electric Cooperative, Inc. |
| BILECO | Biliran Island Electric Cooperative, Inc. |
| BISELCO | Busuanga Island Electric Cooperative, Inc. |
| BOHECO I | Bohol I Electric Cooperative, Inc. |
| BOHECO II | Bohol II Electric Cooperative, Inc. |
| BUSECO | Bukidnon II Electric Cooperative, Inc. |
| CAGELCO I | Cagayan I Electric Cooperative, Inc. |
| CAGELCO II | Cagayan II Electric Cooperative, Inc. |
| CAMELCO | Camiguin Island Electric Cooperative, Inc. |
| CANORECO | Camarines Norte Electric Cooperative, Inc. |
| CAPELCO | Capiz Electric Cooperative, Inc. |
| CASELCO | Cagayan De Sulu Electric Cooperative, Inc. |
| CASURECO I | Camarines Sur I Electric Cooperative, Inc. |
| CASURECO II | Camarines Sur II Electric Cooperative, Inc. |
| CASURECO III | Camarines Sur III Electric Cooperative, Inc. |
| CASURECO IV | Camarines Sur IV Electric Cooperative, Inc. |
| CEBECO I | Cebu I Electric Cooperative, Inc. |
| CEBECO II | Cebu II Electric Cooperative, Inc. |
| CEBECO III | Cebu III Electric Cooperative, Inc. |
| CENECO | Central Negros Electric Cooperative, Inc. |
| CENPELCO | Central Pangasinan Electric Cooperative, Inc. |
| COTELCO | Cotabato Electric Cooperative, Inc. |
| DANECO | Davao Del Norte Electric Cooperative, Inc. |
| DASURECO | Davao Del Sur Electric Cooperative, Inc. |
| DIELCO | Dinagat Island Electric Cooperative, Inc. |
| DORECO | Davao Oriental Electric Cooperative, Inc. |
| ESAMELCO | Eastern Samar Electric Cooperative, Inc. |
| FIBECO | First Bukidnon Electric Cooperative, Inc. |
| FICELCO | First Catanduanes Electric Cooperative, Inc. |
| FLECO | First Laguna Electric Cooperative, Inc. |
| GUIMELCO | Guimaras Electric Cooperative, Inc. |
| IFELCO | Ifugao Electric Cooperative, Inc. |
| ILECO I | Iloilo I Electric Cooperative, Inc. |
| ILECO II | Iloilo II Electric Cooperative, Inc. |
| ILECO III | Iloilo III Electric Cooperative, Inc. |
| INEC | Ilocos Norte Electric Cooperative, Inc. |
| ISECO | Ilocos Sur Electric Cooperative, Inc. |
| ISELCO I | Isabela I Electric Cooperative |
| ISELCO II | Isabela II Electric Cooperative |
| KAELCO | Kalinga Apayao Electric Cooperative, Inc. |
| LANECO | Lanao Del Norte Electric Cooperative, Inc. |
| LASURECO | Lanao Del Sur Electric Cooperative, Inc. |
| LEYECO I | Leyte I Electric Cooperative, Inc. |
| LEYECO II | Leyte II Electric Cooperative, Inc. |
| LEYECO III | Leyte III Electric Cooperative, Inc. |
| LEYECO IV | Leyte IV Electric Cooperative, Inc. |
| LEYECO V | Leyte V Electric Cooperative, Inc. |
| LUBELCO | Lubang Island Electric Cooperative, Inc. |
| LUELCO | La Union Electric Cooperative, Inc. |
| MAGELCO | Maguindanao Electric Cooperative, Inc. |
| MARELCO | Marinduque Electric Cooperative, Inc |
| MASELCO | Masbate Electric Cooperative, Inc. |
| MOELCI I | Misamis Occidental I Electric Cooperative Inc. |
| MOELCI II | Misamis Occidental II Electric Cooperative Inc. |
| MOPRECO | Mt. Province Electric Cooperative, Inc. |
| MORESCO I | Misamis Oriental I Electric Cooperative, Inc. |
| MORESCO II | Misamis Oriental II Electric Cooperative, Inc. |
| NEECO I | Nueva Ecija I Electric Cooperative, Inc. |
| NEECO II | Nueva Ecija II Electric Cooperative, Inc. |
| NEECO III | Nueva Ecija III Electric Cooperative, Inc. |
| NOCECO | Negros Occidental Electric Cooperative, Inc. |
| NORECO I | Negros Oriental I Electric Cooperative, Inc. |
| NORECO II | Negros Oriental II Electric Cooperative, Inc. |
| NORSAMELCO | Northern Samar Electric Cooperative, Inc. |
| NUVELCO | Nueva Viscaya Electric Cooperative, Inc. |
| OMECO | Occidental Mindoro Electric Cooperative, Inc. |
| ORMECO | Oriental Mindoro Electric Cooperative, Inc. |
| PALECO | Palawan Electric Cooperative, Inc. |
| tPANELCO I | Pangasinan I Electric Cooperative, Inc. |
| PANELCO III | Pangasinan III Electric Cooperative, Inc. |
| PELCO I | Pampanga I Electric Cooperative, Inc. |
| PELCO II | Pampanga II Electric Cooperative, Inc. |
| PELCO III | Pampanga III Electric Cooperative, Inc. |
| PENELCO | Peninsula Electric Cooperative |
| PRESCO | Pampanga Rural Electric Cooperative |
| PROSIELCO | Province of Siquijor Electric Cooperative, Inc. |
| QUEZELCO I | Quezon I Electric Cooperative, Inc. | QUEZELCO II | Quezon II Electric Cooperative, Inc. |
| QUIRELCO | Quirino Electric Cooperative, Inc. |
| ROMELCO | Romblon Electric Cooperative, Inc. |
| SAJELCO | San Jose Electric Cooperative, Inc. |
| SAMELCO I | Samar I Electric Cooperative, Inc. |
| SAMELCO II | Samar II Electric Cooperative, Inc. |
| SIARELCO | Siargao Island Electric Cooperative, Inc. |
| SIASELCO | Siase Island Electric Cooperative, Inc. |
| SOCOTECO I | South Cotabato I Electric Cooperative, Inc. |
| SOCOTECO II | South Cotabato II Electric Cooperative, Inc. |
| SOLECO | Southern Leyte Electric Cooperative, Inc. |
| SORECO I | Sorsogon I Electric Cooperative, Inc. |
| SORECO II | Sorsogon II Electric Cooperative, Inc. |
| SUKELCO | Sultan Kudarat Electric Cooperative, Inc. |
| SULECO | Sulu Electric Cooperative, Inc. |
| SURNECO | Surigao Del Norte Electric Cooperative, Inc. |
| SURSECO I | Surigao Del Sur I Electric Cooperative, Inc. |
| SURSECO II | Surigao Del Sur II Electric Cooperative, Inc. |
| TARELCO I | Tarlac I Electric Cooperative, Inc. |
| TARELCO II | Tarlac II Electric Cooperative, Inc. |
| TAWELCO | Tawi - Tawi Electric Cooperative, Inc. |
| TIELCO | Tablas Island Electric Cooperative, Inc. |
| TISELCO | Ticao Island Electric Cooperative, Inc. |
| VRESCO | V-M-C Electric Cooperative, Inc. |
| ZAMCELCO | Zamboanga City Electric Cooperative, Inc. |
| ZAMECO I | Zambales I Electric Cooperative, Inc. |
| ZAMECO II | Zambales II Electric Cooperative, Inc. |
| ZAMSURECO I | Zamboanga Del Sur I Electric Cooperative, Inc. |
| ZAMSURECO II | Zamboanga Del Sur II Electric Cooperative, Inc. |
| ZANECO | Zamboanga Del Norte Electric Cooperative, Inc. |
