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HONTIVEROS TO MERALCO: REFUND P100B IN OVERCHARGES

Senator Risa Hontiveros said that the Manila Electric Company (Meralco) must be made to refund an estimated P100 billion excessively paid by power consumers across the years, due to various forms of overcollections made by the distribution utility giant.

Hontiveros’ statement comes after her interpellation on the proposed renewal of Meralco’s legislative franchise, in which she said that she would push for a Senate investigation on how Meralco has been overcharging consumers.

“Meralco’s franchise does not expire until 2028 – that is ample time for Meralco to stop all unfair practices, and refund every single peso unjustly taken from consumers.”

“Bago mabigyan ng franchise renewal ang Meralco, dapat ay maitama muna ang mali at panagutan muna nila ang kanilang bilyon-bilyon na sobrang koleksyon. Meralco’s franchise does not expire until 2028 – that is ample time for Meralco to stop all unfair practices, and refund every single peso unjustly taken from consumers,” the veteran legislator said.

During her interpellation, the seasoned lawmaker explained the different means by which Meralco had inflated prices and made excess collections from consumers, which industry experts estimate to be around P100 billion.

The lady senator pointed out that Meralco has been using a nominal weighted average cost of capital (WACC) which determines their allowed rate of return. The higher WACC, she said, means that “consumers are paying so much more than what is needed for Meralco’s viability, while Meralco gets bigger and bigger windfall profits.”

“Meralco has been effectively charging consumers twice for inflation since 2012, or for more than a decade already.”

Hontiveros also said that Meralco has been allegedly overstating its regulatory asset base (RAB) – or the value of its assets including its equipment and infrastructure – to justify imposing higher prices. Likewise, she said that Meralco has been effectively charging consumers twice for inflation since 2012, or for more than a decade already.

Meralco’s initiatives, Hontiveros noted, were only made possible by the inaction of the Energy Regulatory Commission, and its failure to perform its mandate of protecting consumers. 

“The ERC needs to get off its seat and do more to ensure that electricity is available at the least cost, and that there are no unnecessary charges in our monthly bills,” she said.

Hontiveros then said that she would file a proposed Senate resolution urging an investigation by the Senate Committee on Energy on Meralco’s overcollections, “so that a full, fair and transparent accounting for the benefit of our consumers may be made.”

“Bilang pinakamalaking distribution utility ng ating bansa, katulong dapat ng pamahalaan ang Meralco sa paghatid ng mura at maasahan na suplay ng kuryente. Kaso, mukhang mismong Meralco pa ang sumusuway sa mga regulasyon sa ngalan ng mas malaking kita. Karapatan ng taumbayan na maibalik sa atin ang bawat piso na dapat isoli ng Meralco,” she concluded.

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