Manila: Sen. Risa Hontiveros on Monday called for a review of the Energy Regulatory Commission's (ERC) automatic pass-through mechanism, advocating that electricity charges undergo regulatory scrutiny before being reflected in consumers' monthly bills.

According to Philippines News Agency, Hontiveros emphasized that the current system permits distribution utilities to automatically collect pass-through charges, such as generation costs affected by fuel price fluctuations, prior to the ERC's completion of its review. She insisted that every centavo to be charged should be justified and explained before being passed on to consumers.

Hontiveros highlighted that generation, transmission, and system-loss charges constitute approximately 77 percent of a typical residential electricity bill. She argued that the automatic pass-through mechanism potentially diminishes the incentive for power firms to secure cheaper electricity supplies since higher costs are ultimately shouldered by consumers.

The senator's appeal followed the National Grid Corporation of the Philippines' announcement of a PHP0.77-per-kilowatt-hour increase in transmission charges, in addition to Meralco's earlier PHP0.34-per-kWh generation charge adjustment. Hontiveros pointed out that the combined increase could raise the monthly bill of a household consuming 200 kWh by about PHP222, which could significantly offset the PHP60 daily minimum wage increase in Metro Manila set to take effect on July 25.

Further, Hontiveros had earlier filed Senate Resolution No. 509, seeking a Senate inquiry into the ERC's policies on disputed electricity bills and rate adjustments. The resolution aims to identify potential amendments to the Electric Power Industry Reform Act and related regulations to enhance consumer protection.