Meralco urged to reduce rates amid soaring profits

MANILA, Philippines — Advocates for clean and affordable energy argue that Meralco’s projected P43-billion profit this year demonstrates the company’s capacity to lower electricity rates.

The Power for People Coalition (P4P) criticized the power distributor for prioritizing profit over alleviating the burden of high electricity bills on households.

“It is about time that this joyride for the energy company is ended by regulators in the form of lower rates for consumers,” P4P Convenor Gerry Arances said in a statement.

Despite a P0.3587 per kWh decrease in Meralco's power rates for October, households consuming 200 kWh are still expected to pay approximately P2,286 monthly, with the current rate at P11.4295 per kWh.

RELATED: Meralco rates to decrease in October 

The company on Tuesday, October 30 announced that it expects to earn over P43 billion in 2024, following a reported core net income of P35.1 billion for the first three quarters.

Current profits rose by 17% compared to the P30 billion earned from January to September 2023, which means Meralco earned about P18.681 million more each day during the same period in 2024.

Pangilinan attributed the growth in the third quarter to higher contributions from the power generation and retail electricity supply sectors, along with an increase in sales volume for the distribution utility.

RELATED: Meralco to exceed P43 billion profit this year

Citing the Electric Power Industry Reform Act of 2001 (EPIRA), P4P urged the Energy Regulatory Commission (ERC) to check whether Meralco has been providing consumers with the lowest possible energy costs.

Section 23 of the law states that Meralco, as a distribution utility, has the “obligation to supply electricity to its captive market in the least costly manner.” The ERC should also approve the collection of retail rates.

Congress must also examine the factors contributing to the power distributor’s huge profits, P4P added. These include fossil fuel expansion and high distribution rates.

According to research by global energy think tank Ember, the Philippines relied on fossil fuels to generate 78% of its electricity in 2023.

While energy companies are profit-driven businesses,