Understanding Your Bill
Have a question about your high May / June 2020 bill? click here for a more detailed explainer. The page below explains the breakdown of charges on your Meralco Bill and how to read your meter.
While there are so many charges that appear on your bill, not everything goes to Meralco.
That’s right - only about 17% of your bill actually goes to the company. Meralco is responsible for gathering all these charges and simplifying them, so you won’t need to worry about the many different entities collecting payment from you. Here’s a guide to help you understand what each of these charges mean, and where they go.
- Generation Charge
This makes up around 50% of your electricity bill. It covers the cost of power purchased by Meralco from its suppliers = Independent Power Producers (IPPs), power producers with Power Supply Agreements (PSAs) with Meralco, power producers using Renewable Energy and the Wholesale Electricity Spot Market
- Transmission Charge
This is the charge for the cost of delivery of electricity from power suppliers – usually located in other provinces or in remote areas outside the distribution utility's franchise area – to Meralco’s distribution system. This is paid to the National Grid Corporation of the Philippines (NGCP), the transmission service provider.
- System Loss Charge
This refers to the cost-recovery of power lost due to technical and non-technical system losses. The maximum level of losses that may be recovered by private distribution utilities was set at 9.5% by Republic Act No. 7832, which was reduced to 8.5% starting 2010, as provided under ERC Resolution No.17, Series of 2008.
- Distribution Charge
This is the only portion of your bill that goes to Meralco. It covers the cost of developing, constructing, operating and maintaining the distribution system of Meralco, which delivers power from high-voltage transmission grids to commercial and industrial establishments and residential end-users.
- Subsidies – Lifeline and Senior Citizen Discounts
This is for the marginalized, low-income customers and senior citizens who consume up to 100 kWh in a given month. They can enjoy a discount of up to 5%, an amount which is subsidized by all other customers. Under Subsidies, Tax Recovery Adjustment Charge is also included. It is the charge collected from customers of the different local government units where local franchise taxes, prior to rate unbundling, were already paid by Meralco but not yet recovered from customers.
- Metering Charge
This is the charge for the cost of reading, operating and maintaining power metering facilities and associated equipment, as well as other costs attributed to the provision of metering service.
- Supply Charge
This is for the cost of rendering service to customers such as billing, collection, customer assistance and other associated services.
| Government Taxes | Universal Charges | FIT-ALL (Renewable) |
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Local Franchise Tax This is paid to local government units, in accordance with the provisions of Sections 15 and 137 of the Local Government Code. This is a pass-through charge for Meralco, paid and collected in accordance with ERC Regulations. Value Added Tax This is a consumption tax imposed on the sale of electricity and related services through all stages of generation, transmission, distribution and sale of electricity to the final consumer. Tax Recovery Adjustment Charge (TRAC) This is an LGU-specific charge collected from customers of the different local government units where local franchise taxes, prior to rate unbundling, were already paid by Meralco but not yet recovered from customers. Last April 2012, billing of TRAC began in accordance with the ERC approval in its Decision under ERC Case No. 2011-045 RC. |
Missionary Electrification Charge is a universal charge to fund the electrification of remote and unviable areas, as well as areas not connected to the transmission system.
Environmental Charge is a universal charge that accrues to an environmental fund, which is used solely for watershed rehabilitation and management. This fund is managed by the National Power Corporation (NPC) and is pegged at PhP0.0025 per kWh. Stranded Contract Cost of NPC refers to the excess of the contracted cost of electricity under eligible IPP contracts of NPC over the actual selling price of the contracted energy output. |
Feed-in-Tariff Allowance is an additional tariff, imposed on consumers of electric power, to be paid to producers of renewable energy. Because most forms of renewable energy have very high development costs, an extra financial cushion is needed to help renewable energy developers recover their costs. |
All about Meter Reading
Your meter reading is the basis of your monthly Meralco bill. The electric meter of your household continuously records your electricity consumption in kilowatt-hours (kWh). The reading on your meter is recorded by a Meralco meter reader, who is trained to accurately read your meter. To know how to read your own meter and to understand how the readings are reflected on your bill, see below.
When is my meter read?
Once every month. You can check your bill for the schedule of your next meter reading. Here is an example:
How do I read my meter?
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For Digital Meters:
You simply read the number in the digital display. In the illustration below, the reading is 07635.
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For Electromechanical Meters:
Electromechanical meters, on the other hand, have four dials that record your electricity consumption. To read your electromechanical meter, look at the 4 dials (labeled A, B, C and D in the picture below) in the meter. Note that these 4 dials move in different directions. Dials A and C move counter-clockwise, while Dials B and D move in a clockwise direction.
For each dial, record the number that the dial pointer has just passed. In the above illustrated example, the reading on the meter is 5097. Notice that Dial C is recorded as ”9” following the rule that you must record the number the dial pointer has just passed.
Where is the meter reading shown in my bill?
The meter reading can be seen on page 2 (at the back) of your bill, in the “Metering Information” section at the top left portion. To illustrate the different information located in this section, here is an example of a bill:
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1. Meter Number - this identifies your meter. The meter number is reflected as is in the bill.
You will find the meter number at the front of your meter. In the illustration below, the meter number is 118BAS078899. When reading, make sure to look at the correct meter by verifying the meter number with the number presented in the bill.
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2. Pres Rdg - this indicates the meter reading on your scheduled monthly meter reading date. In the illustration below, your actual meter reading by Meralco is reflected as 5097 in your present month's bill.
Note: To know your scheduled monthly reading date, you may refer to the billing information section at the front of your bill. In the illustration below, it shows that the Meralco meter reader read your meter for the month on Jan 11, 2020.
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3. Prev Rdg - this indicates your meter reading from the previous month. In the illustration below, your previous meter reading by Meralco is reflected as 4866 in your present month's bill.
PRESENT MONTH'S BILL
PREVIOUS MONTH'S BILL
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4. Registered - this indicates your registered kWh consumption for the month. It is obtained by the difference between your present reading (in this case, 5097) and your previous reading (in this case, 5000) times the multiplier. In the illustration below, the consumption is 97 kWh.
How is the meter reading used to compute my monthly bill?
Based on your monthly consumption as indicated in your meter reading, MERALCO will send your bill with a breakdown of different charges. This unbundling of the various bill components is mandated under the Electric Power Industry Reform Act (EPIRA) of 2001. These charges are monitored and regulated by the ERC. Your bill amount can be derived using the monthly rates, and your monthly billing determinants or “base” as seen in your bill. For residential customers, your billing determinant is based on your monthly kWh consumption. The following table shows which charges are billed using your kWh consumption or are billed as a single fixed charge per month.
| Bill Component | Per kWh | Per Month |
| Generation Charge |  |
|
| Transmission Charge | |
|
| System Loss Charge | |
|
| Distribution Charge | |
|
| Monthly Supply Charge | |
|
| Fixed Supply Charge | |
|
| Monthly Metering Charge | |
|
| Fixed Metering Charge | |
|
| Lifeline Discount/Subsidy | |
|
| Senior Citizen Discount/Subsidy | |
|
| Universal Charges | |
|
| Feed-In Tariff Allowance (FIT-All) | |
For government taxes, your billing determinant or the tax base is effectively the amount incurred for that specific charge being taxed. The following table explains the components used as billing determinants for the taxes charged. The tax rate is based on various government tax issuances.
| Taxes | Billing Determinants |
| Local Franchise Tax | Summed billed amounts of the following: - Generation Charge - Transmission Charge - System Loss Charge - Distribution Charge - Monthly/Fixed Supply Charges - Monthly/Fixed Metering Charges - Lifeline Discount/Subsidy - Senior Citizen Discount/Subsidy |
| Value Added Tax | Imposed individually on the following charges: - Generation Charge - Transmission Charge - System Loss Charge - Distribution Charge (Distribution + Supply + Metering) - Subsidies - Local Franchise Tax |
| Energy Tax | Imposed on residential customers with a monthly kWh consumption that exceeds 650 kWh |
Can Meralco pull-out my meter?
The meter is owned by Meralco and it reserves the right to pull-out the meter if:
- It needs to be checked or inspected
- Electric service is terminated
- Abnormalities were found during inspection
- You request for it
What are the other important things I should know?
- Bill deposit
The Bill Deposit is an amount required from all customers of all distribution utilities as a guarantee for payment of electric bills. It is similar to the advance deposit made by a tenant who rents an office or a residence.
It is equivalent to the customer's estimated billing for one month, which will initially be based on a customer’s estimated electricity consumption, or the customer's load schedule, provided upon application for electric service with MERALCO. It may be adjusted yearly based on the actual average monthly consumption of the customer.
AUBD (Annual Update of Bill Deposit) - Through the AUBD, Meralco determines if the bill deposit is enough to cover the customer's average monthly bills, and to update it, if necessary. Accrued interest shall be applied to bill deposit adjustments.
The AUBD is done in two ways:
1. Through the collection of an additional amount in case of insufficient deposit, or
2. Through refund to customer of any amount beyond the required deposit.
Your bill deposit may be refunded if the amount paid is greater than the average bill by more than 10%. If the bill deposit is less than 10%, additional deposit will be required. If the amount falls within the allowable difference, then you will be exempted from additional collection and will not be eligible to apply for a refund.
This review is done during the anniversary month of your Meralco service contract. To find out if you are still eligible for the AUBD program, you may call our hotline, 16211.
2. Senior Citizen Discount
Here’s a special treat for all our beloved seniors! Get a 5% discount on certain components of the bill as long as your consumption is less than 100kWh. To avail of this, just visit any business center and present the following:
- Senior citizen ID
- Recent Meralco bill under the senior citizen’s name
- Barangay certificates of two (2) people who have known the senior citizen for at least one (1) year
