Get to know your bill
- Mar 4, 2024
- 3 min read
Updated: Mar 24
Curious about the different charges you see on your electricity bill? It is about time that you understand and get to know the different charges you see on your bill.

Generation Charge
This is the composite cost of electricity generated and sold to a distribution utility such as Subic EnerZone.
Transmission Charge It is the cost of transmitting power from the generation source to the receiving point of a distribution utility.
Systems Loss Charge
It is the cost of power loss recovery due to technical and non-technical system loss for delivering power to the end users.
Distribution Charge
It is the cost of developing, constructing, operating, and maintaining the distribution system that delivers power from high-voltage transmission grids to end-users. This is the only charge that goes to Subic EnerZone.
Customer Charge
A. Supply/Customer Charge It is the cost of billing, collection and various customer-related services.
B. Metering Charge It is the cost associated with measuring the amount fo energy consumed which include meter, meter-installations, accessories and meter reading.
Lifeline Subsidy Discount
RA 9136 provides that inter-class subsidies shall be removed, except the lifeline rates applicable to residential electricity users who fall below the poverty threshold as determined by the PSA or beneficiaries of the “4Ps Act” (Pantawid Pamilyang Pilipino Program) under Republic Act No. 11310. Subic EnerZone's lifeline is set at 100 kWh. This discount applies only to the generation, transmission, distribution, supply, metering, and systems loss charges.
The Energy Regulatory Commission has set Subic EnerZone's lifeline rate subsidy as follows:
Kwh Consumption | Discount* |
0-50 | 100% |
51-80 | 100% |
81-100 | 50% |
*Discount on Generation, Transmission, Distribution, Systems Loss Charge, Supply Charge, Metering Charge
Lifeline Rate Subsidy This will cover the aid (subsidy) given to marginalized (Lifeline Rate) customers. The Uniform Retail Rate structure specified in R.A. 9136 makes it subsidy-free. It means that inter-class subsidies currently enjoyed under the existing rate structure shall be removed.
VAT Generation
This is a tax on the cost of electricity generated and sold to a distribution utility.
VAT Transmission
It is a tax on the cost of transmitting power from the generation source to the receiving point of a distribution utility.
VAT System Loss
It is a tax on the cost of power loss recovery due to technical and non-technical system loss for delivering power to the end users.
VAT Distribution
This is a 12% tax on the cost of the Distribution, Supply and Metering charges.
VAT Others
This is a 12% tax on the cost of the Other charges.
Universal Charge
It is a non-bypassable charge determined, fixed and approved by the Energy Regulatory Commission to be imposed on all electricity end-users. This is remitted to the Power Sector Assets and Liabilities Management (PSALM), owned and controlled by the government. This would include:
Stranded costs/contracts of NPC. Payment for the NPC debts after sale of its generating assets in excess of the amount assumed by the National Government.
Missionary Electrification. R.A. 9136 mandates NPC to carry on with its missionary function of providing electricity to non-viable, far-flung areas in the countryside even after its privatization.
Environmental Charge. The amount of P0.0025 per kilowatt hour shall be collected from all end users. This environmental fund will be managed by NPC, to be used solely for watershed rehabilitation and management.
Tax Equalization. It is the equalization of the taxes and royalties applied to indigenous or renewable source of energy vis-a-vis imported energy fuels.
Stranded Costs/Contracts of Utilities. This refers to the distribution utilities' losses in value of generating assets and contracts approved by the ERB before December 31, 2000 as a consequence of industry deregulation.
Surcharge
This amount represents two percent (2%) of previous unpaid bills.



