Generation and Transmission Charge
The Generation Charge is a pass-through component of the Meralco bill. The level of the Generation Charge is adjusted on a monthly basis as prescribed by the Energy Regulatory Commission in its Order dated October 13, 2004 under ERC Case No. 2004-322 approving the "Guidelines for the Automatic Adjustment of Generation Rates and System Loss Rates by Distribution Utilities" or the AGRA.
The Transmission Charge is another pass-through component of the Meralco bill. Transmission Charges are adjusted on an annual basis in accordance with the Order of the Energy Regulatory Commission dated October 28, 2005 under ERC Case No. 2005-06 RM prescribing the "Guidelines for the Adjustment of Transmission Rates by Distribution utilities" or the TRAM.
Click here to download Generation and Transmission TableLifeline Discount/Lifeline Subsidy
Section 73 of the Electric Power Industry Reform Act of 2001, also known as EPIRA, provides for an equitable pricing scheme that would benefit marginalized electricity consumers. In the case of Meralco, residential customers consuming 100 kWh and below will enjoy discounts on their electric bills.
Meralco‘s Lifeline Discount is applied to the generation, transmission, system loss, distribution, supply and metering charge components of every lifeline customer's bill. Since the inception of the Lifeline program, there have been modifications on the rate structure, with a Lifeline rate scheme being reflected in customer bills since February 2009. Below is a comparison of the old and the new lifeline rate structure:
OLD Lifeline Rate Structure |
|
kWh Consumption |
Discount Rate |
0 to 50 kWh |
50% |
51 to 70 kWh |
35% |
71 to 100 kWh |
20% |
NEW Lifeline Rate Structure |
|
kWh Consumption |
Discount Rate |
0 to 20 kWh |
100% |
21 to 50 kWh |
50% |
51 to 70 kWh |
35% |
71 to 100 kWh |
20% |
In the new Lifeline Rate Structure, more than 300,000 Meralco residential customers consuming within 20 kilowatt-hours per month will enjoy a 100% lifeline discount.
The discount rate is applied to the sum of the generation, transmission, system loss, distribution, supply and metering charge components of the residential bills. However, the P5 fixed portion of the metering charge of residential customers consuming within 20 kWhs, is not subject to the lifeline discount.
Currently, close to two million of Meralco's residential customers enjoy the benefits of the Lifeline Rate Discount.
System Loss
This is a charge that recovers the cost of energy due to system losses. As a pass-through charge mandated by law, it is revenue neutral for Meralco.
System Loss is composed of two types:
Technical loss – the component of system loss that is inherent in the delivery of electrical energy. It is the energy lost as heat in the conductors and equipment of the distribution system.
Non-technical loss – electricity lost through theft or pilferage and errors in meter reading and billing The Anti-Pilferage Law (Republic Act 7832) passed in 1994 limited the level of system losses that a distribution utility can pass on to its customers.
Since February 2010, private distribution utilities like Meralco have a system loss cap of 8.5% of the total electricity purchased.
Electric cooperatives in the Philippines have a system loss cap of 14%.
Meralco absorbs the cost of any system loss above the 8.5% limit.
The level of System Loss Charge is adjusted on a monthly basis as prescribed by the Energy Regulatory Commission in its Order dated October 13, 2004 under ERC Case No. 2004-322 approving the "Guidelines for the Automatic Adjustment of Generation Rates and System Loss Rates by Distribution Utilities" or the AGRA.
For the System Loss Charge Rates, please click on this link
