Understanding your Bill

Front


Back

1. GENERATION

This goes to the generating companies (National Power Corporation and Independent Power Producers) or power suppliers.
 

2. SYSTEM LOSS

This is the recovery of the cost of power loss due to technical and non-technical system losses.
 

3. DISTRIBUTION

These charges go to Meralco and cover the many services and tasks it performs, such as:

  • The cost of building, operating and maintaining its distribution system
  • Billing, collection, customer service, records maintenance, and associated services
  • Reading, operating and maintaining power metering facilities
  • Adjustments for the unavoidable fluctuations in the exchange rate of the Philippine Peso against the US Dollar

4. TRANSMISSION

This goes to the Transmission Company (TransCo).
 

5. SUBSIDIES

The subsidies under this group provide for socialized pricing mechanisms for marginalized customers and the different customer classifications.
 
  • 5A. Government Taxes and Universal Charges
- These subgroups include taxes and other charges remitted to the national and local governments and the Power Sector Assets and Liabilities Management Corporation (PSALM). These remittances are used to fund th electrification of remote areas not connected to the transmission system.
 
  • 5B. Other Charges
- These refer to items not included above like backbillings, application of refund, pre-payments, etc.