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Rates & Charges

Bill Breakdown FAQs

  1. Lifeline Subsidy and Discount

    1. Why is Meralco charging me for Lifeline and what is this for?

    The Lifeline subsidy rate is mandated by the government (Congress, DOE, DSWD and ERC) to provide assistance to 4Ps beneficiaries and certified-marginalized customers through bill discounts based on electricity consumption:

    • 0–50 kWh: 100% discount
    • 51–70 kWh: 35% discount
    • 71–100 kWh: 20% discount

    Currently, this amounts to P0.01/kWh to keep it minimal for the non-lifeline customers (with consumption of 100 kWh and above) who are being charged for it. Even customers registered for the lifeline discount will not receive the discount if their monthly consumption exceeds 100 kWh; instead, they will be charged the lifeline subsidy.

    Portion of the collected amount goes to Meralco's lifeline customers as bill discount. The rest is remitted to the Power Sector Assets and Liabilities Management Corporation (PSALM).

    Meralco serves as a collecting agent of this pass-through charge but does not earn from it. This is implemented not just by Meralco, but by all distribution utilities and electric cooperatives nationwide.

    This is not a new charge. Meralco has been collecting this since 2003.

  2. 2. What is the lifeline discount?

    This is the discount rate given to 4Ps beneficiaries and certified-marginalized customers who are financially unable to pay their electricity bills at full cost.

    Qualified customers get discounts set by the Energy Regulatory Commission (ERC), based on electricity consumption:

    • 0–50 kWh: 100% discount
    • 51–70 kWh: 35% discount
    • 71–100 kWh: 20% discount
  3. 3. Who are qualified for the lifeline program?

    Customers who meet any of the following criteria are qualified for the lifeline program:

    • Beneficiaries of the "4Ps Act" (Pantawid Pamilyang Pilipino Program) under Republic Act No. 11310.
    • Customers considered to be living below the poverty threshold as certified by the Local Social Welfare and Development Office.
  4. 4. I am a 4Ps beneficiary/living below poverty threshold. Why am I not getting the discount?

    Customers whose name and address in the 4Ps list matches their account details in Meralco are automatically given a lifeline discount. Otherwise, you need to apply to avail of the lifeline discount.

    Please visit the nearest Meralco Business Center to submit the following requirements:

    For 4Ps (Pantawid Pamilyang Pilipino Program) beneficiaries whose name and address in the 4Ps list do not match the name and address in their Meralco account:

    • Duly accomplished Lifeline Rate Application form
    • Most recent Meralco bill (The barangay indicated in the Meralco bill must be the same as the one in DSWD's Certified List of 4Ps Beneficiaries)
    • 4Ps ID (If 4Ps ID is lost/unavailable, other government-issued IDs may be provided)

    For customers who are not beneficiaries of 4Ps but are living below the poverty threshold as certified by the local Social Welfare and Development office:

    • Duly accomplished Lifeline Rate Application form
    • Most recent Meralco bill (The barangay indicated in the Meralco bill must be the same as the one in DSWD's Certified List of 4Ps Beneficiaries)
    • A Certification from the local Social Welfare and Development Office (SWDO) issued within the last six (6) months showing that his or her family income is below the poverty threshold set by the Philippine Statistics Authority (PSA) and applicable at the time of his or her application
    • Any valid government-issued ID reflecting the address of the registered customer and his or her signature, such as: Police Clearance, Postal ID, PRC License ID, Senior Citizen ID, SSS ID, TIN ID, Unified Multipurpose ID, Phil ID
  5. 5. Will I automatically receive the Lifeline discount after I apply?

    The Lifeline discount will only be applied if the kWh consumption for the month is within the consumption threshold of 100 kWh and below. If your consumption for the month is above 100 kWh, your bill for that month will not be provided a discount under the Lifeline program. Instead, you will be charged with lifeline subsidy.

  6. 6. It's unfair for people like us to see 4Ps with aircon and ref. Why do I need to pay for their discount?

    The Lifeline discount will only be applied to the bills of 4Ps customers if the kWh consumption for the month is within the consumption threshold of 100 kWh and below. If they have aircon and ref, their consumption for the month will be above 100 kWh and they will not be provided a discount under the Lifeline program. They will be charged with lifeline subsidy.

    Meralco defers to the wisdom of the government in the implementation of the charges. All the fees charged to the customer are subject to the approval and oversight of the Energy Regulatory Commission.

  7. Senior Citizen Subsidy and Discount

    1. Why is Meralco charging me for Senior Citizen and what is this for?

    The Senior Citizen subsidy charge is mandated by the government (Congress and ERC) to cover the discount on electricity being given to:

    • Senior citizens whose bill is under their name and consuming 100 kWh & below: 5% discount
    • DSWD-accredited senior citizen centers: 50% discount

    Currently, this amounts to P0.0001/kWh, and is being charged to all other customers who are not being given the Senior Citizen discount (with consumption of 100 kWh and above). Even customers registered for the senior citizen discount will not receive the discount if their monthly consumption exceeds 100 kWh; instead, they will be charged the senior citizen subsidy.

    Meralco serves as a collector of this pass-through charge but does not earn from it. This is implemented not just by Meralco, but by all distribution utilities and electric cooperatives nationwide.

    This is not a new charge. Meralco has been collecting this since 2011.

  8. 2. What is the senior citizen discount?

    It is a discount on electricity being given to:

    • Senior citizens whose bill is under their name and consuming 100 kWh & below: 5% discount
    • DSWD-accredited senior citizen centers: 50% discount
  9. 3. I am a senior citizen but I don't have a discount. How do I avail?

    To avail of the senior citizen discount:

    • Apply online at: https://meralco.my.site.com/SCDA/s/
    • Upload the following requirements:
      • Filipino Senior Citizen ID
      • Recent Meralco bill under the senior citizen's name
      • Barangay certificate or notarized affidavit of two (2) disinterested persons who have known the senior citizen for at least one (1) year
  10. 4. I am a senior citizen but instead of getting a discount, why am I being charged for it? I am also being charged for Lifeline Subsidy.

    If you are seeing charges for Senior Citizen Subsidy or Lifeline Subsidy, it is because the government has mandated to help fund these discounts by collecting charges from non-Lifeline and non-Senior Citizen customers who are not getting these discounts.

    Even customers registered for the senior citizen discount will not receive the discount if their monthly consumption exceeds 100 kWh; instead, they will be charged the senior citizen subsidy.

    The discounts are not automatic. You will only receive it if you have applied and been approved for it, and if your consumption for the month does not exceed 100 kWh.

  11. System Loss

    1. Why is Meralco charging me for System Loss and what is this for?

    The System Loss charge is allowed by the government to recover the cost of power lost due to technical and non-technical reasons.

    The ERC has set a maximum level of system loss that distribution utilities like Meralco can collect. Losses beyond this level cannot be passed on to customers, and is shouldered by the distribution utility.

    This charge is part of the generation and transmission charges, which are remitted to power generation companies and the NGCP.

    Meralco serves as a collector of this pass-through charge but does not earn from it. This is implemented not just by Meralco, but by all distribution utilities and electric cooperatives nationwide.

    This is not a new charge.

  12. 2. Why is there System Loss?

    Because electricity travels far distances, from power plants to our homes, energy is lost along the way. System loss is the difference between electricity generated by power plants and electricity consumed by end-users.

    We assure you that Meralco implements all efforts possible to minimize both technical and non-technical system losses. Any amount recovered from such losses are given back to customers in the form of reduction in generation charge.

    There are technical system losses due to:

    • Electricity flowing through wires, which generates heat
    • Power passing through multiple transformers
    • Voltage and stability concerns in the power system also cause minor losses

    There are also non-technical system losses, due to:

    • Electricity theft
    • Illegal connections

    The ERC has set a maximum level of system loss that distribution utilities like Meralco can collect. Losses beyond this level cannot be passed on to customers, and is shouldered by the distribution utility.

  13. 3. Why are you charging me for losses due to electricity theft or illegal connections? Why don't you charge it to the power pilferers?

    We understand your frustration. We assure you that Meralco implements all efforts possible to minimize system losses.

    Meralco is only allowed to collect within a maximum level set by the ERC. Losses beyond this level cannot be passed on to customers, and is shouldered by the distribution utility.

    Any amount recovered from power pilferers are given back to customers in the form of reduction in the generation charge.

  14. Government Taxes

    1. Why is Meralco charging me for Government Taxes and what is this for?

    The charge for Government Taxes is mandated by the government. It covers the following:

    • Real Property Tax and Local Franchise Tax, which go to LGUs
    • Value Added Tax and Energy Tax (for residential customers consuming more than 650 kWh), which goes to the National Government

    Meralco serves as a collector of this pass-through charge but does not earn from it. This is implemented not just by Meralco, but by all distribution utilities and electric cooperatives nationwide.

    This is not a new charge.

  15. 2. Shouldn't Meralco pay for the taxes? Why is it being charged to me?

    Taxes are charged to customers as mandated by existing laws and in accordance with ERC regulations.

  16. Universal Charges

    1. Why is Meralco charging me for Universal Charges and what is this for?

    The Universal Charges are mandated by the government (Congress and ERC) to cover the following:

    • Missionary Electrification: funds electricity service in remote or off-grid communities that are not connected to the national grid transmission system, and are difficult or costly to serve
    • Environmental Charge: a fixed charge of P0.0025/kWh, used for watershed rehabilitation and management
    • NPC stranded debts: covers the unpaid financial obligations of the National Power Corporation

    Meralco serves as a collector of these pass-through charges but does not earn from it. This is implemented not just by Meralco, but by all distribution utilities and electric cooperatives nationwide. This charge is remitted to the Power Sector Asset and Liabilities Management (PSALM) Corp.

    This is not a new charge. Meralco has been collecting this since 2003.

  17. FiT-All

    1. Why is Meralco charging me for FiT-All and what is this for?

    The charge for Feed-in Tariff Allowance (FiT-All) is mandated by the government to support the development of renewable energy projects under the Feed-in Tariff (FiT) Program.

    FIT-All rate is set annually by the ERC. This is a pass-through charge collected by Distribution Utilities, such as Meralco, Retail Electricity Suppliers (RES), and the National Grid Corporation of the Philippines (NGCP) and is remitted to the National Transmission Corporation (TransCo).

    Meralco serves as a collector of this pass-through charge and does not earn from it.

    This is not a new charge. Meralco has been collecting this since 2015.

  18. GEA-All

    1. Why is Meralco charging me for GEA-All and what is this for?

    The charge for Green Energy Auction Allowance (GEA-All) is mandated by the government (Congress, DOE, and ERC) to fund the development of renewable energy projects like solar, wind, and hydro. It supports the Green Energy Auction Program (GEAP), a government program where renewable energy projects are selected through competitive bidding to ensure the lowest possible cost for customers.

    Currently, GEA-All is being charged at PhP0.0371/kWh. This is a pass-through charge collected by Distribution Utilities, such as Meralco, Retail Electricity Suppliers (RES), and the National Grid Corporation of the Philippines (NGCP) to be remitted to the National Transmission Corporation (TransCo).

    Meralco serves as a collector of this pass-through charge but does not earn from it.

    This is a new charge that Meralco started collecting in January 2026.

  19. Bill Charges

    1. Why are there so many charges in my bill? Why is Meralco charging me for all of these?

    The Electric Power Industry Reform Act (EPIRA) of 2003 requires the unbundling or breakdown of electricity rates so customers can:

    • See clearly where their payment goes, as each charge corresponds to a specific service or program
    • Ensure that government-mandated charges are applied correctly

    All charges reflected in the bill have a regulatory basis — either mandated by the government or through ERC rules. Meralco does not collect any charge without a regulatory basis.

    Only 12% of your bill goes to Meralco for the delivery of electricity and customer service. Meralco has not increased its charges since 2015.

    The 88% are pass-through charges that Meralco collects but does not earn from:

    • 64%: Generation charge — covers the cost of power purchased from suppliers. The ERC ensures Meralco sources electricity at the lowest possible cost.
    • 11%: Taxes, subsidies and other charges — remitted to the government and other accredited agencies
    • 8%: Transmission charge — covers the cost of delivering electricity from power plants to Meralco. Remitted to the NGCP.
    • 5%: System loss — covers losses due to technical and non-technical factors. Regulated and capped by the government. Remitted to power generation companies and the NGCP.

    These charges are implemented not just by Meralco, but by all distribution utilities and electric cooperatives nationwide. These charges are not new. Meralco has been collecting these for many years.

  20. 2. Does Meralco earn from these pass-through charges?

    Meralco only collects these pass-through charges but does not earn from them:

    • Generation charge — remitted to power generators
    • Taxes, subsidies and other charges — remitted to the government and other accredited agencies
    • Transmission charge — remitted to the NGCP
    • System loss — regulated and capped by the government. Remitted to power generation companies and the NGCP.

    These charges are implemented not just by Meralco, but by all distribution utilities and electric cooperatives nationwide. These charges are not new. Meralco has been collecting these for many years.

  21. 3. Shouldn't the government pay for these pass-through charges? Why are these being charged to me?

    Meralco defers to the wisdom of the government in the implementation of the charges. All the fees charged to the customer are subject to the approval and oversight of the Energy Regulatory Commission.

    These pass-through charges:

    • Are government-mandated
    • Don't go to Meralco
    • Are not unique to Meralco
    • Are not new charges

    Meralco does not collect any charge without a regulatory basis.

  22. 4. Why do electricity rates keep going up?

    Electricity rates move when the different components of your bill change.

    Generation charge, which makes up 64% of your bill, changes monthly depending on:

    • Global fuel prices (such as coal, gas, and oil)
    • Supply and demand in the power market
    • Availability of power plants
    • Forex

    Because it is the largest portion, any movement in the generation charge can significantly impact your total bill.

    Increases in the Transmission Charge, which makes up 8% of your bill, can also contribute to movement in rates.

    All charges reflected in the bill have a regulatory basis — either mandated by the government or through ERC rules. Meralco does not collect any charge without a regulatory basis.

  23. 5. Why is Meralco's rate so high? You're a big company — shouldn't you benefit from economies of scale and charge less?

    Meralco's distribution charge is regulated by the Energy Regulatory Commission (ERC). The ERC sets a cap on what distribution utilities can charge, and this rate goes through a rigorous review and approval process before it can be implemented. Meralco cannot raise its distribution charge on its own.

    In fact, Meralco's distribution charge did not increase since 2015, even as the cost of operations, materials, and labor has increased over the years.

    Only 12% of your bill goes to Meralco for the delivery of electricity and customer service. The remaining 88% are pass-through charges that Meralco collects but does not earn from:

    • 64%: Generation charge — remitted to power generators
    • 11%: Taxes, subsidies and other charges — remitted to the government and accredited agencies
    • 8%: Transmission charge — remitted to the NGCP
    • 5%: System loss — regulated and capped by the government, remitted to power generation companies and the NGCP

    When customers see higher bills, the increase is most often coming from these pass-through components, not from Meralco's distribution charge. Meralco does not collect any charge without a regulatory basis.

  24. 6. Can Meralco defer the collection of some of these charges to help its customers?

    The collection of the charges in the bill is governed by the rules of the ERC. Any decision to defer these charges should be based on the direction of the ERC.

    Only 12% of your bill goes to Meralco for the delivery of electricity and customer service. The remaining 88% are pass-through charges that Meralco collects but does not earn from:

    • 64%: Generation charge — remitted to power generators
    • 11%: Taxes, subsidies and other charges — remitted to the government and accredited agencies
    • 8%: Transmission charge — remitted to the NGCP
    • 5%: System loss — regulated and capped by the government, remitted to power generation companies and the NGCP

    These charges must be remitted on time to the appropriate entities. Otherwise, Meralco would have to shoulder the cost.

  25. 7. My bill doubled/tripled this month even if my consumption did not change. What caused the increase?

    Your bill may have increased due to an increase of P0.53 per kilowatt-hour in generation charge in April, which makes up 64% of your bill. With the depreciation of the peso versus the dollar and with most of the generation cost paid in dollars, this resulted in higher generation charges.

    Thus, even if your consumption remains the same, an increase in rates will result in a higher bill.

    And since it's summer, cooling appliances such as air conditioners and electric fans are used longer and refs are opened more frequently. Many employees have also switched to a work-from-home set-up. These may have contributed to higher electricity consumption. You may check the consumption chart in your bill to compare your consumption with the previous month and the same period last year.

  26. 8. We only added an aircon because of the heat, but why is my bill too high?

    Adding even just one aircon unit can increase your consumption if:

    • It runs for several hours a day or overnight
    • The temperature is set very low
    • The unit is not energy-efficient or properly maintained

    Also, during summer, aircon compressors work harder and run longer to keep the room cool, which increases electricity consumption even further.

    And with the increase in generation charge in April, the biggest component of your bill, this can significantly increase your total bill.

    You may check the consumption chart in your bill to see how your usage has changed compared to previous months.

  27. 9. My bill is too high/I think my bill is incorrect. Are you sure the meter reading is correct? Or was this estimated?

    We assure you that the meter reading is correct. You may check your bill for your actual consumption based on your meter reading and compare it with your consumption last month or with the same month last year.

    If you check the chart in your bill you can see that consumption usually increases during summer months, which is why bills during this time are higher.

    If you still have concerns about your meter reading, you may reach us through any of our channels.

  28. 10. Meralco's charges should be audited. The government should step in.

    All distribution utilities like Meralco are highly regulated. All charges reflected in the bill have a regulatory basis — either mandated by the government or through ERC rules.

    Implementation of these charges is also subject to the review of ERC. Meralco does not collect any charge without a regulatory basis.

  29. 11. Shouldn't the government be the one covering these charges since these are their projects and programs?

    Meralco defers to the wisdom of the government in the implementation of the charges. All the fees charged to the customer are subject to the approval and oversight of the Energy Regulatory Commission.

  30. 12. Our bill increased this month despite our efforts to implement energy-saving measures. What is the cause of this?

    Your bill may have increased due to an increase of P0.53 per kilowatt-hour in generation charge in April, which makes up 64% of your bill. With the depreciation of the peso versus the dollar and with most of the generation cost paid in dollars, this resulted in higher generation charges.

    Thus, even if you implemented energy-saving efforts, an increase in generation charge will result in a higher bill.

    And since it's summer, cooling appliances such as air conditioners and electric fans are used longer and refs are opened more frequently. Many employees have also switched to a work-from-home set-up. These may have contributed to higher electricity consumption. You may check the consumption chart in your bill to compare your consumption with the previous month and the same period last year.

  31. 13. With the refund of P14.17B announced by the ERC, can we expect lower electricity bills in May?

    Meralco will comply with the higher average refund rate of P0.2511/kWh, which will be reflected in the bills of all customers under "AWAT (Refund)/Collect", starting May 2026. This may help offset possible increases in May driven by higher fuel prices.

  32. 14. What is an Annual Update of Bill Deposit (AUBD)?

    The Bill Deposit is an amount required from customers of distribution utilities as a guarantee for payment of electric bills. This is equivalent to their average bill for the past 12 months. This is updated annually and earns interest at a rate prescribed by ERC.

    If the bill deposit previously paid is higher than the average bill for the past 12 months, we refund the difference. But if the bill deposit previously paid is lower than the average bill for the past 12 months, we collect the difference in 12 monthly installments.

  33. 15. I am only a tenant and I just moved in recently. Why are there so many charges?

    The Electric Power Industry Reform Act (EPIRA) of 2003 requires the unbundling or breakdown of electricity rates so customers can:

    • See clearly where their payment goes, as each charge corresponds to a specific service or program
    • Ensure that government-mandated charges are applied correctly

    All customers are required to pay these charges. All charges reflected in the bill have a regulatory basis — either mandated by the government or through ERC rules. Meralco does not collect any charge without a regulatory basis.

    These charges are implemented not just by Meralco, but by all distribution utilities and electric cooperatives nationwide.

  34. 16. I am not a high-consuming household. I do not want to be included in paying these charges.

    All customers are required to pay these charges. All charges reflected in the bill have a regulatory basis — either mandated by the government or through ERC rules. Meralco does not collect any charge without a regulatory basis.

    These charges are implemented not just by Meralco, but by all distribution utilities and electric cooperatives nationwide.

System Loss FAQs

  1. 1. Why is Meralco charging me for System Loss and what is this for?

    System loss is a natural and unavoidable effect of delivering electricity to end-users. As electricity travels from power plants through the transmission and distribution network to homes and businesses, a small amount of energy is naturally lost due to technical reasons, while some losses also result from non-technical factors such as electricity theft and illegal connections.

    Because electricity is procured based on the total customer demand including the energy that is naturally lost during delivery, the cost of system loss is already part of the electricity purchased from power generation companies and transmitted through the grid. As such, the System Loss Charge is a government-approved pass-through charge that allows distribution utilities to recover the cost of these allowable losses. It is not a separate service or an additional charge imposed by Meralco.

    The cost of system loss forms part of the generation and transmission costs paid to power generation companies and the National Grid Corporation of the Philippines (NGCP). Meralco serves only as a collecting agent for this pass-through charge and does not earn from it. This mechanism is implemented by all distribution utilities and electric cooperatives nationwide.

    To protect customers, the Energy Regulatory Commission (ERC) regulates how much system loss may be recovered. Under the ERC rules, distribution utilities may recover actual subtransmission/substation (ST/SS) losses and feeder losses, with only feeder losses capped at 5.5%. Any system loss beyond the ERC-approved recoverable level is absorbed by the concerned distribution utility, including Meralco, and cannot be charged to customers.

    Although some level of system loss is unavoidable, Meralco continues to invest in grid modernization, Advanced Metering Infrastructure (AMI), and anti-electricity theft initiatives to further reduce system loss and improve the efficiency and reliability of electricity delivery.

  2. 2. Why is there System Loss?

    Because electricity travels a long distance from generation plants before reaching our homes and businesses, a portion of it is naturally lost along the way and cannot be used.

    System loss occurs due to technical factors, such as:

    • Heat generated as electricity flows through power lines
    • Energy lost as electricity passes through transformers that convert high voltage to lower, safer levels for customers
    • Voltage fluctuations or instability within the power system

    There are also non-technical losses caused by illegal connections and electricity pilferage.

    The Energy Regulatory Commission (ERC) sets a cap on the amount of system loss that may be charged to customers. Only losses within this allowable limit are shared among customers. Any amount exceeding the cap is shouldered by distribution utilities such as Meralco and is not passed on to customers.

  3. 3. Why are you charging me for losses due to electricity theft or illegal connections? Why don’t you charge it to the power pilferers?

    We understand your frustration. Meralco does not tolerate electricity theft. Illegal connections are disconnected, and power pilferers may face legal action under the law.

    Recovery of the non-technical loss is allowed under the current rules/laws as the allowable system loss considers both technical and non-technical losses. This approach is consistent with standard global practice for electricity distribution systems as non-technical losses are highly affected by socio-economic factors.

    The law/regulations also sets system loss caps so that only reasonable cost of losses are to be included in electricity rates. Only the allowable level of system loss may be recovered from customers, while any losses beyond the ERC-approved recoverable level are absorbed by the distribution utility.

    In addition, any amount recovered from power pilferers is returned to customers through a reduction in generation charges.

    In 2025, Meralco’s actual system loss was only 5.85%, which is below the ERC limit.

  4. 4. Is system loss unique to Meralco?

    No. System loss is not unique to Meralco or the local power industry. It is a common operational aspect of utility distribution, including water services, where some volume may be lost during delivery. In the Philippines, the system loss charge for electricity is implemented by distribution utilities and electric cooperatives nationwide, subject to government regulation.

    All businesses experience losses and account for these in their pricing. For example, supermarkets account for spoiled/rotten fruits and vegetables, damaged goods due to handling and theft by customers. These losses are all part of business operations and included in the overall pricing in the supermarket. The goal of all businesses is to reduce them but you can’t totally eliminate them.

    The difference with Meralco and other distribution utilities is that ERC mandates to explicitly show how much of customer charges is related to system loss to increase transparency.

  5. 5. Is the Philippines the only country that charges for system loss?

    No. All countries recognize system losses as part of operating an electricity network. The difference is how these costs are shown and regulated. In some countries, they are included in network or distribution charges, while in others, they may appear separately.

    In the Philippines, system loss appears as a separate line item in the monthly electricity bill to provide customers with greater transparency on what they are paying for. The ERC limits the amount that may be recovered from customers. For private distribution utilities like Meralco, the maximum is the actual ST/SS loss typically at 1-2% and feeder loss capped at 5.5%. Any losses beyond this limit are absorbed by the distribution utility.

    In 2025, Meralco’s actual system loss was 5.85%, which is below the ERC’s allowable limit.

  6. 6. Is system loss affected by seasonal weather?

    System loss is influenced by the level of electricity consumption. Generally, the higher the electricity consumption, like during summer season, the higher the losses incurred by the electric power system.

  7. 7. What is Meralco’s response to PBBM’s 2026 SONA and System Loss?

    Meralco supports the government’s efforts to reduce system loss and continuously invests in initiatives that improve the efficiency, reliability, and integrity of the power distribution system.

    One of these key initiatives is the rollout of the Advanced Metering Infrastructure (AMI) program. AMI enables near real-time monitoring of electricity consumption and the distribution network, helping detect meter irregularities, unauthorized connections, and other potential sources of non-technical losses more quickly. It also improves operational efficiency, meter reading accuracy, and outage response, ultimately benefiting customers.

    In addition to AMI, Meralco continues to modernize and upgrade its distribution facilities to reduce technical losses and enhance service reliability. Meralco remains committed to implementing technologies and programs that help minimize system loss while ensuring that only the allowable level of system loss, as prescribed by regulations, is recoverable from customers.

  8. 8. What is Meralco doing to reduce system loss?

    Meralco continues to invest in facility upgrades, network modernization, and loss-reducing technologies. Public reports after the 2026 SONA also noted that Meralco has kept its system loss below the ERC ceiling.

  9. 9. How has Meralco’s system loss improved over time?

    Meralco has significantly reduced system loss over the years—from above 10% in the early 2000s to 5.99% in 2024 and 5.85% in 2025. In the first half of 2026, system loss stood at 6.07%, remaining below the ERC’s allowable limit of 5.5% feeder loss plus actual subtransmission and substation losses.

    These sustained improvements have benefited customers through lower system loss charges.

  10. 10. How does Meralco compare with other Distribution Utilities in the Philippines?

    Meralco’s system loss is lower than many other distribution utilities in the Philippines.

    In 2024, Meralco recorded 5.99% system loss, which was further reduced to 5.85% in 2025.

    This means Meralco continues to perform within the better range locally, while still working to further reduce system loss through inspections, anti-pilferage efforts, and meter-related programs.

  11. 11. How does Meralco compare with international Distribution Utilities?

    System loss is not unique to Meralco. It is present in electric utilities in other countries because some energy is naturally lost when electricity travels through wires, transformers, and other equipment before reaching customers.

    Based on available benchmarks, Meralco’s system loss is within the range of several utilities in the region. Meralco recorded 5.99% system loss in 2024, which is close to Vietnam’s EVN and Malaysia’s TNB at ~6%. 

    Some utilities have lower system loss, such as Singapore and Thailand, but these systems may differ from Meralco in terms of size, customer mix, network design, service area, and reporting method. Some international figures may also include transmission loss, so comparisons should be taken as general benchmarks, not exact one-to-one comparisons.

    The main point is: system loss happens in electric utilities worldwide, and Meralco continues to manage and reduce it while staying within regulatory limits.

  12. 12. What are elevated metering infrastructures and how do they relate to system loss?

    Elevated Metering Centers (EMCs) are used in areas where there is a high risk or incidence of electricity pilferage. This is not unique to Meralco. Other distribution utilities in the Philippines also implement similar measures to help protect their electricity networks from illegal connections and meter tampering.

    More importantly, EMCs help protect the community. Illegal connections and unauthorized access to power lines can create serious electrical and fire hazards, putting both customers and surrounding communities at risk.

    Meralco is also continuously improving its metering technology through EMX, a newer solution designed to be more lightweight and secure, while continuing to help deter electricity pilferage and promote safer communities.

  13. 13. How can I report incidents of electricity pilferage to Meralco?

    You may report electricity pilferage anonymously via Meralco’s 24/7 hotline and social media channels.

    These include illegal “jumpers”, tampered meters, unauthorized / “flying connections”, and theft of wires/cables and other grid infrastructure.

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