Consumer advocacy group CitizenWatch welcomed Meralco’s announcement of a P0.3557 per kilowatt-hour reduction in electricity rates this December, calling it timely relief for Filipino households grappling with rising prices as the holidays approach.
For a typical residential customer consuming 200 kilowatt-hours a month, the rate cut translates to roughly P71 in savings—an amount that can help stretch family budgets during the most expensive season of the year.
But CitizenWatch stressed that the reduction could have been far more meaningful had the government fully enforced an existing law designed to lower power costs. The group pointed to the delayed implementation of key provisions of Republic Act No. 12120, or the Philippine Natural Gas Industry Development Act, particularly the value-added tax exemption on electricity generated from indigenous natural gas.
Eight months after the law’s implementing rules and regulations took effect, the VAT exemption remains unapplied, depriving consumers of additional savings. According to figures cited in a recently filed House resolution, proper enforcement of the exemption would have shaved off about P42 more from the monthly electricity bill of an average household.
The resolution, now before the House Committee on Energy, seeks to investigate why the consumer benefit has yet to materialize despite clear provisions in the law. CitizenWatch said the delay underscores broader concerns over regulatory coordination and accountability, especially when policy inaction directly affects household expenses.
While acknowledging Meralco’s rate reduction, CitizenWatch urged the Department of Energy, the Bureau of Internal Revenue, and other concerned agencies to move with urgency. The group emphasized that laws passed to protect consumers must be implemented as intended, noting that even small amounts matter for families already stretched thin.
Every peso saved, CitizenWatch said, is a peso that can go toward food, education, or basic needs. Ensuring the full implementation of the Natural Gas Industry Development Act, it added, is not just a legal obligation but a necessary step toward genuinely easing the burden of electricity costs for Filipino households.