Senator Sherwin Gatchalian on Tuesday questioned the recent increase in electricity generation charges, calling the hike “concerning” and warning of possible further bill shocks in the coming months.
In a report by RH Raymund Dadpaas, Gatchalian cited a ₱0.75 per kilowatt-hour (kWh) increase in generation charge as a key issue prompting the Senate Committee on Proactive Response and Oversight for Timely and Effective Crisis Strategy (PROTECT) to summon officials from Manila Electric Company (Meralco) and the Energy Regulatory Commission (ERC) to a hearing on Wednesday, April 29, 2026.
According to Gatchalian, who chairs the committee, the hearing aims to seek a clear explanation for the rising electricity costs, which have contributed to what many consumers describe as “bill shock.”
Meralco earlier attributed the increase primarily to foreign exchange (forex) fluctuations. However, Gatchalian said this explanation may not fully capture the situation, noting that the impact of rising global fuel prices has yet to be reflected in current rates.
“Nagtaas ng generation charge, narinig ko sa presscon ng Meralco this is due to forex hindi pa tayo pumapasok doon sa oil crisis, forex pa lang ang pinag-uusapan natin kaya inieexpect ko mayroon pang bill schock later on. Dahil kapag pumasok na ang presyo ng coal, pumasok na ang presyo ng gas at iba pa tataas pa ang bill natin,” Gatchalian said.
The senator warned that consumers may face additional increases once the costs of coal, oil, and gas are incorporated into future billing cycles.
Gatchalian also urged the ERC to step in and exercise its authority to mitigate the impact on consumers. He suggested implementing a staggered or deferred collection scheme for the increased charges to prevent sudden spikes in electricity bills.
“Ang ERC may kapangyarihan na i-staggered, hindi naman kailangan–ang sabi nga namin huwag isabay sa pagtaas ng presyo ng langis ngayon. ‘Yung 0.75 [per kwh] mataas pa rin ‘yan, so dapat inistaggered. And ‘yung mga dadating pa na iba dapat staggered din,” he said.
Meanwhile, Gatchalian clarified that the “lifeline subsidy rate,” a subsidy aimed at assisting low-income households, is not responsible for the spike in electricity bills.
He explained that the lifeline subsidy rate accounts for only a small portion of government-mandated charges and has remained unchanged over time.
“Ang lifeline rate ay 0.1 centavo out of 0.56 centavos doon sa government mandated charges. Kasi nag government charges about 0.56 centavos 0.1 centavo lang siya. But hindi siya nagbago from free war until now pareho lang siyag centavo,” he said.
The lifeline subsidy rate, mandated under the Electric Power Industry Reform Act of 2001 (Republic Act No. 9136), is collected to support the Pantawid Pamilyang Pilipino Program (4Ps) and to subsidize electricity costs for marginalized consumers.
The senator emphasized the importance of maintaining support for vulnerable sectors, stressing that removing such subsidies would further burden low-income families.
“Kailangan natin tulungan ang pinakamahirap nating mga kababayan, kung hindi natin sila tutulungan wala silang kuryente lalong mas mahihirapan sila sa buhay,” Gatchalian added.
