Posted by: pumzy | June 18, 2008

Customers Paying For Meralco’s Pension Plan!!!

I was in a particularly good mood last night as I had just finished talking to my family over the phone and knowing that everybody’s fine and well back at home. Then this newscaster from NET-25 announced that Meralco may have been collecting from its customers the pension plan of the freaking electric distribution company! Say what? At that moment, especially after an explanation by the GSIS representative in an interview, I was fuming with disgust that had my bumbay neighbor (with a very foul body odor) showed up in my front door I would have strangled him until he turns violet. Whew!

In the sample Meralco bill that the news program showed, the total charge is 2000 PHP with 500 PHP amounting from the very mysterious Distribution Charge and Systems Loss. That’s 25% of the total bill! Unbelievable! Customers are paying a quarter of their bill for something that nobody knows what. Now, GSIS is saying that the pension plan for Meralco’s workers, of course including those lucky SOB in the higher echelon of the company, is being paid for them by the public and that nobody in Meralco is actually contributing anything for their own adult diaper program. That is crazy! A non-contributory pension plan. Wow!

I hope that the Philippine government takes time to investigate this issue (instead of focusing on the Ces Drilon voluntary kidnapping) so that every paying customers will have a chance to know the truth, nothing but the truth!

Here’s Meralco’s brief explanation about their customer’s monthly bill sh!t…

Just because an item is in your Meralco Bill, doesn’t mean it goes to Meralco.

The fact is, only 20% of your total bill payment goes to Meralco. The rest covers pass-through charges which Meralco collects on behalf of power suppliers, the National Transmission Company, the government and other entities involved in bringing electricity into your home.

This way, you only have one bill to pay. Meralco ensures that your payment gets to these groups, and power gets to you.

Unbundling the bill
The longer, itemized bill you see these days complete with all these details or pass through charges is called the “unbundled” bill. Created in compliance with Section 36 of Republic Act 9136, this itemizing of your bill according to cost and function makes it easy to see exactly who you are paying and what you are paying for.

Sample Meralco Bill



  1. The distribution charge is the cost of constructing, operating and maintaining the facilities and lines that distribute electricity. It is the part the goes to Meralco. What is ‘mysterious’ in that? The more mysterious item is the VAT on electricity because if the government is serious in lowering electricty rates, then why taxed the industry so heavily?

  2. I agree. The government is milking everything in sight by using different tax collection schemes.

    Thanks for the definition 🙂

    I have not seen the whole batch of advertisement that Judy Ann Santos did for Meralco though. What GSIS claimed (that Meralco is collecting from their customers money for their own pension plan) made me think that the distribution charge and the systems loss items in the Meralco bill are not what they really are or as what these items are defined. It seems that there are bits of other details that should not be included in the computation of the said two items. Only if GSIS’s claim is true. 🙂

  3. Engaging information,, I will visit again

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