Senate to tackle fuel cost audits

Senate President Sherwin Gatchalian has filed Senate Resolution No. 581 seeking an inquiry into the absence of regular fuel cost audits in the power sector, saying stronger oversight is needed as rising generation charges continue to drive up electricity bills.

Gatchalian said the increasing cost of power generation, coupled with the lack of routine fuel cost audits, highlights the need for greater accountability and transparency to ensure consumers pay the lowest possible electricity rates.

“Rising generation charges and the lack of regular fuel cost audits reveal the urgent need for stronger accountability and transparency in the power generation sector to ensure that electricity is supplied at the least-cost manner,” he said.

The senator cited the case of a residential customer of Manila Electric Company consuming 200 kilowatt-hours (kWh) a month, whose electricity bill increased from about ₱2,350, or ₱11.74 per kWh, in January 2025 to ₱2,970, or ₱14.83 per kWh, in July 2026 despite unchanged consumption.

According to Gatchalian, the figures show that high electricity rates are largely being driven by generation charges that are ultimately passed on to consumers.

He also noted that fuel costs—mainly from Meralco’s contracted supply of liquefied natural gas (LNG) and coal—accounted for 86.16 percent of the utility’s total generation charges in July 2026, underscoring the need to determine whether these costs are being properly audited and accurately reflected in electricity rates.