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Meralco Explains Increase in April 2010 Electric Bill

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Dear customer,

You may have noticed an increase in this month’s electric bill.

In recent months, there have been increases in the generation charge component of the electric bill. In April alone, the generation change went up by 0.93 Pesos/kWh to P6.7699/kWh from P5.8417/kWh in March.

The rise in generation charges springs from the high cost of electricity that Meralco buys from its suppliers. These suppliers consist of the National Power Corporation (NCP), Independent Power Producers (IPP) and Wholesale Electricity Spot Market (WESM).

The major factor that caused the sharp rise in electricity was because of the increase in the price of WESM, a venue for trading electricity as a commodity in the spot market.

Meralco does not add any mark-up to the cost of electricity purchased from these electricity suppliers. The generation cost, which averages about 50-60% of your electric bill, goes directly to Meralco’s power suppliers and adds nothing to Meralco’s income.

If you will take a minute to examine your electric bill (found in the last column of you bill), you will note that what goes to Meralco is approximately 20-25% of your total bill. The rest go to the power suppliers for the cost of electricity, the NGCP for transmission charges, and to the Government in the form of taxes.

While Meralco has no control over the rise or fall of generation costs, we would like to help you manage your electric consumption so that you can save on your electric bill. For this purpose, we invite you to visit for energy-saving tips or our Meralco Appliance Calculator (MAC) found in the lobby of every Business Center.

We assure you of our continuing effort to find the best energy mix in order to give you the least cost in electricity charges.

Should you need clarification on any of the points mentioned above, please feel free to call 16211.

José P. De Jesús


Meanwhile, the photo below pretty much sums up what we Meralco customers feel towards Mr. de Jesús’ message…

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