Nasecore to ERC: Rethink decision on Meralco rates
By Lenie Lectura – November 25, 2024
from Business Mirror
The National Association of Electricity Consumers for Reforms Inc. (Nasecore) asked the Energy Regulatory Commission (ERC) to reconsider its decision to allow the Manila Electric Co. (Meralco) to withdraw its fifth regulatory period (5RP) application and refile it for a different period.
The petition was filed late Friday, according to Nasecore President Pete Ilagan. However, ERC Chairman Monalisa Dimalanta said she has yet to check if the petition has already been received by her office.
A copy of Nasecore’s petition indicated that the ERC ruling last October 30 was “a clear regulatory failure in protecting consumers against unjust and unreasonable rates.”
The ERC had granted Meralco’s motion to withdraw the 5RP application, covering July 2022-June 2026, and ordered Meralco to refile its 5RP application to cover a different period, 2025 to 2028. In effect, regulatory years (RYs) 2022 to 2024 was treated as a lapsed period.
“After careful review of the arguments submitted by all parties and taking into account the developments in the four-year regulatory period as filed covering years 2022 to 2026, including the regulatory years that have already lapsed as of date, the commission considered the most reasonable and achievable procedure within the new regulatory rate reset will be completed,” the ERC order read.
Nasecore is opposing the ERC’s decision. “We need a regulator who knows how to establish a just and reasonable rate to protect the captive electricity consumers,” said Ilagan in a Viber message.
“To keep pushing the regulatory period onward, by another two years, not learning the lessons of the Fourth Regulatory Period (stretched to seven straight years) which was declared as lapsed, is to unduly allow another round of over-recoveries for Meralco, which was previously ordered to refund the consumers P40.4 billion in ERC Case No. 2020-043.
This is the case of repeating the same mistake over and over again and expecting a different result. There seems to be no end to the inertia and laxity of the Commission,” the petition read.
Meralco had said it would refund its customers an estimated P16 billion if the ERC will declare the 5RP as lapsed.
“Isn’t this reason enough to proceed with the instant case and set the rate of Meralco for the Fifth Regulatory Period instead of allowing Meralco to withdraw its application and re-file it for a different period, thereby sparing the consumers from having to pay excessive rate?” Nasecore pointed out in its petition.
