Meralco says poor customers to benefit from zero charges
By Alena Mae S. Flores – October 11, 2020 at 07:45 pm
from manilastadnard.net
Manila Electric Co., the biggest retailer of electricity, said over the weekend lifeline customers covered under the directive of the Energy Regulatory Commission will start enjoying zero distribution, supply and metering charges this month.
“The zero distribution/supply/metering charges for lifeline customers will be implemented this October,” Meralco head of utility economics Lawrence Fernandez said over the weekend.
ERC earlier asked Meralco to set to zero the distribution, supply and metering charges of lifeline consumers whose monthly energy consumption does not exceed 100 kilowatt-hours for one month.
“Only a TRO will stop its implementation and Meralco did not seek any TRO,” Fernandez said.
Meralco paid P19 million in penalty imposed by the ERC for violating the advisories the agency issued during the community quarantine period from March to July.
Meralco appealed the ERC directive to provide a retail rate discount to lifeline customers.
ERC has yet to resolve Meralco’s appeal.
“Pending the resolution of the motion for partial reconsideration, Meralco will implement the retail rate discount in its October 2020 billing,” the company said.
The ERC said the retail rate discount would provide temporary economic relief to more than two million lifeline consumers. It said the total discount to be provided to all lifeline consumers of around P200 million should not be charged to the non-lifeline consumers.
Meralco in its appeal called the ERC decision on the imposition of retail discounts to lifeline customers as “arbitrary and unconstitutional.”
“The imposition of the retail rate discount, amounting to approximately P230 to P240 million, effectively requires Meralco to absorb the costs of providing its distribution service to lifeline customers on the sole ground that the COVID-19 pandemic has wreaked havoc on our economy. With due respect, while the imposition is indeed well-intentioned, the same has no basis in law,” Meralco said.
It said the order was beyond the scope of the commission’s authority under the Electric Power Industry Reform Act of 2001 and was “unduly oppressive and confiscatory.”
“There is no provision in the (EPIRA Electric Power Industry Reform Act) which expressly grants this Honorable Commission the power to unilaterally direct the grant of discounts or subsidies, which will be fully shouldered by Meralco, for any reason, much less on account of hardships caused by the pandemic,” the company said.
