Batas Pambansa (BP) Blg. 36 (September 7, 1979) imposes an electric energy consumption tax on the monthly electric power consumption of every residential customer of electric power utilities. The tax shall be paid to and withheld by electric utilities from their respective residential customers along with their monthly electric billings.
It simply divide customers into two, inside and outside Metro Manila.
Within Metro Manila
| Monthly Consumption | Rate |
Not over 650
KWH
|
Exempt
|
Over 650 KWH
but not over 1,000 KWH
|
Php 0.10/KWH in
excess of 650 KWH
|
Over 1,000 KWH
but not over 1,500 KWH
|
PhP35.00
plus PhP0.20/ KWH in excess of
1,000 KWH
|
Over 1,500 KWH
|
PhP135.00
plus PhP0.35/ KWH in excess of
1,500 KWH
|
Outside Metro Manila
| Monthly Consumption | Rate |
| If the electric power rates (excluding the Exempt energy tax) are equal to or igher than the electric power rates (including the energy tax) prevailing in Metro Manila | Exempt |
| If the prevailing electric power rates The tax is equal to the (excluding the energy tax) are less than the difference or the full prevailing electric power rates (including the amount of energy tax, energy tax) in Metro Manila | The tax is equal to the difference or the full amount of energy tax whichever is lower |
Electric consumption per sectors in 2016
Electric Bill
1. Generation Charges
Generation charge is the cost of power generated and sold to Meralco by its suppliers, NPC, the Independent Power Producers (IPPs) and the Wholesale Electricity Spot Market (WESM).
2. Transmission Charges
It is for the cost of the delivery of electricity from generators. This charge goes to the National Grid Corporation of the Philippines (NGCP). Transmission Charges are adjusted on an annual basis.
3. Distribution charge covers the cost of developing, building, operating and maintaining the distribution system of distribution utility firms, which brings power from high-voltage transmission grids, to commercial and industrial establishments and to residential end-users.
4. Supply Charge refers to the cost of rendering services to customers, such as billing, collection, customer assistance and associated services.
5. Metering Charge includes the cost of reading, operating and maintaining power metering facilities and associated equipment, as well as other costs attributed to the provision of metering service.
6. System loss charge represents cost recovery for the cost of power lost due to technical and non-technical system losses and is adjusted on a monthly basis.
7. Universal Charge is a non-bypassable charge remitted to the Power Sector Assets and Liabilities Management Corporation (PSALM), owned and controlled by the government, and created under RA. 9136. At present, the universal charge includes the missionary electrification charge and environmental charge at a rate of P0.0454/KWh and P0.0025/KWh, respectively. Universal charges share 0.5% of the total billing of residential customers.
8. Lifeline Subsidy Charge is paid by residential customers consuming more than 100 KWh of electricity per month and is the source for funding the Lifeline Subsidy. The Lifeline Subsidy is a socialized pricing mechanism provided for by Section 73 of the EPIRA.
9. Senior Citizen Subsidy Charge is imposed on subsidizing end-users, i.e., residential customers consuming more than 100 KWh at a rate of P0.0001 per KWh. The Senior Citizen Subsidy is granted to registered senior citizens with a monthly consumption not exceeding 100 KWh at a minimum 5% discount on their monthly electric.
10. VAT : National Grid Corporation of the Philippines (NGCP), a privately held national greed operator, was granted VAT exemption but it's removed starting 2018.