Hontiveros wants Senate to probe Meralco’s price-setting practices
Deputy Minority Leader Risa Hontiveros. Photo from the Senate Public Relations and Information Bureau
MANILA, Philippines — Sen. Risa Hontiveros has filed a resolution urging the chamber’s panel on energy to investigate the price-setting practices of Manila Electric Company (Meralco) as well as the rate-setting and other regulatory mechanisms of the Energy Regulatory Commission (ERC).
In her Senate Resolution No. 1308, Hontiveros said consumer groups and industry experts raised serious concerns about Meralco’s rate-setting practices, including allegations of overcharging and lack of transparency.
“Meralco has been using an interim average rate and there have been substantial delays in the ERC’s rate-reset process, raising concerns about the fairness of interim and current rates,” the resolution reads.
“There is a need to review the rate-setting methodology used by the ERC because it appears to have failed to implement the performance-based regulation,” it added.
Senators on Feb. 3 voted to pass on the third and final reading the bill renewing the franchise of Meralco for another 25 years.
Article continues after this advertisementAt the Senate’s session, House Bill No. 10926 was approved with 18 affirmative votes, one negative, and zero abstention.
Article continues after this advertisementOnly Hontiveros voted against the passage of the legislation.
In her explanation of the vote delivered following the approval of the measure, Hontiveros said Meralco, throughout the years, has failed to abide by its obligations and serve consumers.
“Before even considering a franchise renewal, my view is that Meralco must be made to properly refund its customers for its past overcollections,” she said.
According to the senator, Meralco has volunteered to “initiate refunds with the Energy Regulatory Commission,” admitting that it has “over-charged consumers.”
Hontiveros also emphasized that this overcollection needs to be addressed first before any further steps are taken.
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