I admit I’m one of the many people who put blame to Meralco, I thought all our payments go directly to them. Thanks to Meralco’s Pandesal Forum last May 26 held at Kamuning Bakery, I was enlightened with proper information which by the way I will also share with you guys haha!
Meralco does not earn from the pass-through charges, such as the generation and transmission charges. Payment for the generation charge goes to the power suppliers, while payment for the transmission charge goes to the National Grid Corporation of the Philippines (NGCP).
To give you a specific idea, below are the breakdown where our money goes:
The largest component of the bill. It comprises the total of all costs charged by the different generation companies that provide Meralco with power supply. These include San Miguel Corporation, Aboitiz Power, DMCI, First Gen, AES, and EGCO. In special cases, this may include charges from the Wholesale Electricity Spot Market (WESM).
It goes to NGCP. Of course, there are also government taxes and other charges warranted by government regulators to ensure the industry’s viability. Instead of each of these entities delivering bills to your doors and collecting payment, Meralco consolidates all charges in one electric bill, before sending it to you. Then, Meralco collects payment and pays the other companies and the government in behalf of its consumers.
The only amount Meralco receives for its services. Distribution charge is not as unpredictable as other charges because it is regulated by the Energy Regulatory Commission (ERC). In fact, the distribution charge decreased last 2014, became even lower last 2015, and has not changed since then.
Another interesting part of the forum is the Meralco Orange Tag. Did you know that this tag can inform you how much is the estimated cost consumption of every appliances.
Below are some rates of the most commonly used household appliances:
7 cu. ft. Conventional Refrigerator – Php 18.10
16″ Stand Fan Cost per hour – Php 0.60
32″ LED TV Cost per hour – Php 0.40
1 hp Window type Air Conditioner Cost per hour – Php 4.84
Top Load Washing Machine Cost per wash – Php 0.84
1.0 L Rice Cooker per use Php 1.76
PC and 19″ Monitor Cost per hour Php 0.71
1000 w Flat Iron Cost per hour – Php 1.80
*Cost are based on Meralco Power Lab tests
For more information you may check their website