Senator Gatchalian calls for audit of fuel pass-through charges

Senate President Win Gatchalian is calling on the Energy Regulatory Commission (ERC) to audit fuel pass-through charges, saying stronger oversight is needed as electricity rates continue to climb.

Gatchalian warned that without close government monitoring, private companies could simply pass higher costs on to consumers.

“Pag hindi nababantayan ang private companies, aabusuhin talaga nila ang presyo. Ipapasa na lang nila sa konsyumer ang presyong nabili nila,” Gatchalian said.

He noted that Meralco's residential electricity rates have steadily increased since January 2025, rising from around P11.74 to P12.36 per kilowatt-hour to P14.48 to P15.10 per kWh.

The Senate leader said the ERC's review should go beyond distribution charges and also examine the generation rates imposed by power producers to determine whether consumers are being charged fairly.

“Ang gobyerno, bulag pagdating sa pass-on charges kaya kailangang ma-audit ito. Nandiyan ang regulator para masiguro na hindi labis-labis ang naipapasang presyo ng kuryente sa mga konsyumer lalo na kung mabilis ang pagtaas,” he emphasized.

During a Senate inquiry initiated by Gatchalian, ERC Chair Francis Saturnino Juan disclosed that the commission last audited fuel pass-through charges in 2023, after the outbreak of the Russia-Ukraine conflict.

ERC Chairperson Monalisa Dimalanta said the commission had previously conducted a fuel audit during the height of the Ukraine conflict but was unable to reach conclusions because several generation companies invoked confidentiality clauses in their fuel supply contracts and failed to submit complete documents.

When Gatchalian asked whether the regulator is currently checking if the fuel costs being passed on are reasonable, Dimalanta acknowledged that the ERC is "not thoroughly" doing so.

She said distribution utilities are expected to first validate the billings of their suppliers, although she agreed that the regulator still needs to establish a more robust audit process for fuel pass-through charges.

Gatchalian maintained that relying solely on distribution utilities to scrutinize generation companies is insufficient, especially since some suppliers are affiliated with the utilities themselves, stressing that regulators must play a more active oversight role.

-Paraluman News