Meralco tariff — slab structure and rate components
Meralco electricity tariff is approved by Energy Regulatory Commission and is published in ERC's tariff orders. This page explains the structure — slabs, fixed charge, fuel pass-through, and statutory levies — and points you to the authoritative source for current per-unit rates.
Tariff structure — how ${provider.name} bills are calculated
Meralco bills are calculated by applying the regulator-notified per-unit rate to your units consumed, then adding fixed charges, fuel pass-through, and statutory levies. The order of operations matters because some lines are percentages of others.
Residential tariff in Philippines is typically slabbed — a graduated rate where the first block of units is priced lower than the next. The exact slab boundaries are notified by ERC in periodic tariff orders. For Meralco, the current slab table is published at https://www.erc.gov.ph/.
Commercial and industrial tariffs are typically non-telescopic, meaning all units in a cycle are priced at the slab the monthly total lands in. Be aware of this when crossing slab thresholds for a small business.
Fixed charge
The fixed charge is a flat monthly amount tied to your sanctioned load. Paid regardless of consumption. It funds the meter, the service-line maintenance, and the operator's customer-service infrastructure.
Reducing your sanctioned load (where appropriate) lowers the fixed charge. If you are paying for a 5 kW sanctioned load but actually use 2 kW, apply for a load reduction at Meralco's customer service — the fixed charge drops proportionally.
Fuel pass-through
Most Philippines electricity tariffs include a monthly fuel pass-through line (called FPA, FAC, or similar) that compensates for the difference between forecast and actual fuel costs.
The pass-through is approved by ERC on a regular schedule (monthly or quarterly). The figure on your bill is the pass-through for a past period, not the current consumption month. Pass-through can be positive or negative.
Pass-through is the single most volatile line on most electricity bills. A spike in fuel costs in one quarter can move the total bill by 10-25% in either direction in the following quarter without any change in your consumption.
Statutory levies — taxes, duties, and surcharges
Philippines bills include national and provincial taxes layered on top of the energy charge. The exact composition varies, but typically includes a general sales tax (VAT/GST), an electricity duty (provincial or state), and one or more financing surcharges that fund the country's power sector debt.
Statutory levies are percentages applied to base amounts; understanding the base of each percentage is key to predicting how a change in consumption translates into a change in the total bill. The bill explicitly shows the rate of each levy and the base it is calculated on.
Some statutory levies have an opt-out for compliant taxpayers (e.g., income tax withholding for tax-return filers). If Philippines offers such an opt-out, check with the relevant tax authority for the application steps.
Verifying your bill against the published tariff
On every Meralco bill you can cross-check the math against the regulator's published tariff in three steps. First, multiply your units consumed by the slab-applicable per-unit rate to verify the energy charge. Second, add the fixed charge for your load category. Third, add the pass-through line (if any) and apply the statutory levies as percentages.
If the bill does not match the formula, the most common causes are: a slab boundary you didn't notice, a tariff revision that took effect mid-cycle (the bill prorates between the old and new rate), or an arrears line from a previous unpaid bill.
If after checking all three you still cannot reconcile the bill to the formula, file a complaint at Meralco customer service (16211). The operator's customer service can pull up your consumption data and walk through the calculation with you.