Universal Charge Increases Rates

Gov’t Universal Charge increases rates (Meralco Advisory April 2020)

Due mainly to the upward adjustment of the government’s Universal Charge, electricity bill for the month of April 2020 will have a slight increase. The rate increase amounts to around P0.1050 per kWH or an additional P21.00 to the total bill of typical households where power consumption averages 200kWh monthly. Public policy charges like the Universal Charge are remitted to the government and Meralco does not earn from such charges.

Meralco’s distribution, supply, and metering charges, however, have remained unchanged for almost 5 years.

Meralco’s countermeasure to minimize the increase

Because malls, factories and other power intensive establishments were unable to operate due to the ECQ, demand for power was significantly reduced.

Meralco used this opportunity to invoke the Force Majeure provision in its Power Supply Agreements (PSA) for the duration of ECQ. This resulted to a reduction in generation charges, minimizing the increase in this month’s electricity bill.

Where does the government’s Universal Charge go?

Government Universal Charges go to Missionary Electrification (UC-ME) and Environmental Charges (UC-EC), among other things. UC-ME uses these funds for the electrification of remote areas throughout the Philippines, while UC-EC uses their portion for watershed rehabilitation projects to ensure energy supply.