By Lenie Lectura – June 11, 2020
from Business Mirror


The Energy Regulatory Commission (ERC) issued a show-cause order to the Manila Electric Co. (Meralco) for allegedly violating directives related to bill advisories.

Meralco, in the ERC order dated May 29, was told to submit its explanation on why it should not be held liable for its alleged violations of the ERC directives within 10 days from its receipt of the order.

“The Commission provided enough guidance to the distribution utilities on their dealings with their consumers during the periods of the Enhanced Community Quarantine [ECQ] and Modified Enhanced Community Quarantine, so as not to cause additional burden at the time of a Public Health Emergency due to Covid-19.  We cannot tolerate such non-compliance and any erring party must be held accountable for their actions or misactions,” said ERC Chairperson and CEO Agnes VST Devanadera in a statement released Wednesday.

For its part, Meralco maintained it did not violate any rules.

“We confirm receipt of the letter from ERC and we are given 10 days from receipt to respond. We believe that we have complied with the existing regulations and directives set by the regulator and we will explain in full to the Commission the basis for our actions and compliance.

We reiterate that Meralco has not violated any rule even if our operations were severely challenged by this pandemic,” said Meralco First Vice President and Head Regulatory Management Jose Ronald V. Valles.

The ERC indicated that Meralco allegedly violated certain directives in the advisories it issued in April and May.

For one, the commission said distribution utilities must provide the word “estimate” on the consumer bill.

Also, the cumulative amount of electricity bill that was supposed to have fallen due within the ECQ shall be amortized in four equal monthly installments, payable in the four succeeding billing months following the end of the ECQ.

The ERC also ordered that payments in areas covered by ECQ extension until May 15 shall commence no earlier than May 30. Meralco said it would come up with a separate bill that is more transparent and will be “very clear” to the consumers, following mounting complaints of a sudden surge in supposed electricity consumption for the month of May.

The ERC, lawmakers and other consumer groups want Meralco to unbundle the exact rates that were charged to consumers during the ECQ period.

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