Marcos urged to extend suspension of pass-through charges to electricity bills

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Marcos urged to extend suspension of pass-through charges to electricity bills
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A consumer advocacy group asked President Ferdinand Marcos Jr. to halt the imposition of pass-through charges on electricity bills, aligning with his recent decision to suspend pass-through fees levied by local government units on motor vehicles carrying goods or merchandise.

Meralco linemen upgrade the electrical post and wiring along Fabella Road at Barangay Addition hills in Mandaluyong City on April 21, 2021.MANILA, Philippines — A consumer advocacy group asked President Ferdinand Marcos Jr. to halt the imposition of pass-through charges on electricity bills, aligning with his recent decision to suspend pass-through fees levied by local government units on motor vehicles carrying goods or merchandise.

Pass-through charges in electricity bills, on the other hand, happen when the price set by electricity generation companies differs from the actual cost due to changing fuel prices. Consumers have to cover the additional costs, caused by the unpredictable nature of fossil fuel prices influenced by global factors.

“Pass-through charges on electricity bills are just as ridiculous as pass-through charges on roads. Both charges are borne by the consumer while the service they pay for is not improved at all," said Arances in a statement released on Sunday. “In other businesses, the company bears the responsibility for paying for their choice of suppliers. They have to balance their profit with their costs because consumers might no longer patronize them if their goods become too expensive," Arances said.

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