A bitter harvest: Power reforms have failed Filipino consumers
More than two decades after the Electric Power Industry Reform Act (Epira), the promise of cheaper electricity remains a cruel fantasy. Instead of relief, Filipino households are drowning in confusing pass-through charges, paying for social programs and renewable energy incentives that the government refuses to fund properly. Meanwhile, electricity privatization has not helped consumers; it has only padded the wallets of wealthy investors.
The recent outcry over “bill shocks” exposed a bewildering array of mandated fees: FIT-All, GEA-All, lifeline rate, senior citizen discount, universal charges, and system losses. Together, these can exceed 11 percent of a customer’s bill. Each charge has a noble goal, helping the poor, promoting clean energy, but the cumulative effect on consumers is punitive. As Murang Kuryente party list Rep. Arthur Yap rightly asked: why should consumers pay subsidies to attract renewable energy investors? That should be the government’s job.
Epira was sold to the public on promises of competition, efficiency, and lower rates. Instead, the Philippines now has among the highest electricity costs in Southeast Asia. Rates that hovered around P4.00 to P4.50 per kilowatt-hour (kWh) before privatization have now surpassed P13 per kWh.
The promised competition never materialized. We have an oligopoly, with generation and distribution dominated by a handful of powerful conglomerates, the Pangilinan, Gokongwei, Aboitiz, and San Miguel groups. With so few players, there is no real incentive to drive prices down. The system serves shareholders, not the public.
The most damning evidence lies in corporate financial reports. While families struggle to pay bills, Meralco posted a 12-percent profit jump in 2025, reaching P50.6 billion, driven largely by its power generation business. The utility’s chair celebrated a “record year” with “double-digit growth.” This is not a moral judgment but a structural critique: Epira was designed to ensure cost recovery and profitability for private players. When new costs arise, the government’s easiest path is to pass them to consumers rather than absorb them from the national budget.
Akbayan party list Rep. Chel Diokno has correctly argued that companies and their shareholders should shoulder the lifeline discount, not the people, treating it as a tax deduction. As Yap bluntly asked: If these are important policies, why aren’t they government-funded?
The system is broken. Subsidies are poorly targeted. Renewable energy transition costs have become a double burden. We cannot merely tweak a flawed privatized framework, we need fundamental overhaul.
The government must stop treating electric bills as collection agencies for state functions. Social subsidies and green energy incentives must be funded directly from the national budget. Regulatory bodies must enforce stricter competition to break the oligarchs’ grip.
The lights are on, but for millions of Filipinos, the cost has become unbearable. It is time to stop paying for investors’ profits and build a power sector that truly serves the people.
MANNY ILAO,
manny.ilao@yahoo.com
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