A partylist lawmaker has brought to the House floor what he called unjust electricity billing practices, disclosing that roughly 88 percent of consumer electric bills are composed of pass-through charges over which distribution utilities have little direct control.
Rep. Arthur Yap of Murang Kuryente Partylist, delivering a privilege speech, said the issue of high electricity costs had drawn at least three lawmakers to rise on the same day — a signal, he said, of mounting public anger over the burden placed on households, small businesses and workers.
Citing Meralco’s own disclosures, Yap said the bulk of consumer billings consists of generating charges, transmission charges, systems loss, universal charges, fit-in tariff, and various taxes passed directly to the public, leaving only 12 percent as the utility’s actual distribution charge.
“Ang electric bill ng consumer ngayon ay hindi na lamang bayad sa koryente,” Yap said. “Ito ay koneksyon ng samot-saring polisiya, subsidy, at regulatory charges.”
While acknowledging that several of these charges carry legal basis — including the universal charge under Republic Act 9136, the lifeline subsidy, and the feed-in tariff allowance under RA 9513 — Yap argued that many have been expanded beyond what the law expressly authorizes, through administrative issuances, Energy Regulatory Commission regulations, and policy interpretations without explicit legislative mandate.
He singled out the cross-subsidization schemes embedded in the lifeline subsidy and the expanded senior citizens discount, noting that while the state’s intention to assist vulnerable consumers is laudable, neither measure contains an express provision authorizing the cost to be collected from the general consuming public.
Yap reserved his sharpest criticism for the collection of VAT on systems loss — a charge covering electricity lost in transmission before it reaches the consumer.
“Nagbabayad ka para sa pagkawala, pagkatapos papatawan ka pa ng buwis sa pagkawala,” he said. “Paano naging patas iyon?”
He said a committee hearing earlier in the week yielded a significant development: neither the Department of Finance, the Department of Energy, nor the ERC mounted strong objection to the possibility of removing the VAT component on systems loss. “Hindi imposible baguhin ito,” Yap said. “The stage has been set.”
Yap said he has filed House Bill 8415, which seeks to remove VAT on systems loss, and House Resolution 965, calling for a congressional inquiry in aid of legislation on pass-through charges in electric bills.
He closed by urging colleagues to use the moment to revisit, reduce, and where warranted, remove charges he described as no longer just.
“Hindi tayo inihalal upang protektahan ang sistema,” he said. “Inihalal tayo upang itama ang sistema.”