Lawmaker blames ERC for high Meralco rates

By: Krixia Subingsubing – Reporter – 05:44 AM June 30, 2024
from Daily Inquirer / inquirer.net

MANILA, Philippines — A veteran lawmaker on Saturday chided the Energy Regulatory Commission (ERC) for supposedly “confusing and spreading misinformation” on the rate-setting processes of the Manila Electric Co. (Meralco), whose franchise is currently being deliberated in the House of Representatives.

In a statement, Cagayan de Oro Rep. Rufus Rodriguez blamed ERC’s delayed review of Meralco’s power rates as the “root cause of the high-rate issues hounding Meralco, which already caused so much unnecessary noise, precisely because of the highly technical nature of electricity rates.”

“As the regulator, it ultimately has the huge responsibility to ensure timely implementation of rate review and approval as this assures customers that the rates they are paying are fair and reasonable,” Rodriguez added.

Meralco is currently trying to get its 25-year franchise—which is due to end in 2028—renewed amid mounting complaints of its high power rates and inconsistent services, which cover key areas like Metro Manila and the nearby provinces of Rizal, Bulacan, Cavite, Laguna and parts of Pampanga.

Critics like ACT Teachers Rep. France Castro have been calling on the lower chamber not to rush the renewal of Meralco’s franchise.

Timely delivery

However, it has found an ally in Rodriguez, who believes that granting Meralco a new franchise would maintain stability in its areas of services.

The ERC has recently ruled with finality on the rate application of Meralco from 2015 to 2022 when there was no completed rate-reset not just for Meralco but also for other distributors.

Rodriguez said Meralco customers already benefited from the decision after being awarded a close to P50-billion refund, which was triggered by Meralco’s initiative to have its rates reviewed despite the absence of rules and rate-reset for about seven years.

“The recent ruling of the majority of the ERC commissioners is a win for consumers as this paves the way for the regulatory body on other rate applications by other distribution utilities pending before them that will likely result in refunds to consumers, and similarly allow ERC to proceed with the rate-reset process,” Rodriguez said.

He added the ERC “should always keep in mind its mandate to deliver timely and value-driven public service by ensuring a working and stable regulatory environment.”

@KrixiasINQPhilippine