The Energy Regulatory Commission (ERC) should intensify mechanisms to prevent consumers from experiencing “bill shocks” in the future, Senator Risa Hontiveros said on Tuesday.
(Senate of the Philippines / FILE PHOTO / MANILA BULLETIN)
Hontiveros said the ERC should impose a systematic and smarter mechanism to ensure that electricity consumers won’t be stressed in the future, whether or not a pandemic hits the country.
The senator noted the P19-million fine imposed by the ERC against the Manila Electric Co. (Meralco) due to its failure to be transparent on electricity billings during the lockdown and allow customers to pay in installments is just a minor sanction, given the high power rates that continue to burden energy consumers.
“Ano mang panahon, may pandemya o wala, dapat siguraduhing walang nananamantala. Bagama’t welcome ang penalty na ito, ang P19-M na nawala sa bulsa ng Meralco ay katiting lang kumpara sa bilyun-bilyon nilang kinikita (Whatever season, whether there is a pandemic or none, we have to make sure no one is taking advantage. While the P19-million penalty is a welcome development, this is nothing compared to the billions in revenues that they already earned),” Hontiveros said at the Senate Energy Committee hearing.
“I-moderate natin ang kasakimang ito para mas malaking ginhawa sa mga konsyumer, (Let’s moderate this greed to provide consumers some relief),” she said.
Aside from bill shock, Meralco and the National Grid Corporation of the Philippines (NGCP) are also hounded by a persistent issue of enjoying higher return on capital due to costly power rates.
She said the NCGP enjoys a 15 percent weighted average capital (WACC) which is almost twice the global average of eight percent. Meralco, on the other hand, enjoys more than 15 percent under the performance-based rate (PBR) methodology approved by the ERC.
“The review of power rate increase applications should also be extra rigorous and carefully evaluated,” added the senator.
“In these difficult and trying times, everyone should stand side-by-side with our consumers. Dapat busisiin at tingnan kung sumusunod at nagko-comply ang major industry players sa obligasyon nito (we need to scrutinize and check if these major industry players are following and complying with their obligations),” she said.
“Hindi dapat sinasamantala at pinagkakakitaan ng mga industriyang ito ang maliliit na konsyumer na ngayo’y dapang-dapa na dahil sa dagok ng pandemya, (These industries should not be taking advantage of small consumers who are now struggling due to this pandemic),” she said.
She also said the ERC should explore the development and transition to smart grid and micro-grid systems which will allow people to manage their own resources and their demands for energy.
Such systems, she said, can help address billing problems during emergencies and at the same time help in the shift to renewable energy.
“Tiyak na maraming karanasan at pag-aaral tungkol sa operation ng smart grids, smart metering systems, at renewable energy (I’m sure there are plenty of experiences and study regarding the operation of smart grids, smart metering systems and renewable energy),” she said.
“Pero ano pa mang sistema, alam naman natin na ang ‘greed’ ay hindi nababagong basta ng teknolohiya. (But whatever system is adopted, we know greed cannot just be changed by technology),” she added.
“Tungkulin ng regulatory body gaya ng ERC na siguraduhing walang industry players ang nanlalamang (It’s the job of any regulatory body, like the ERC, to make sure industry players are not taking advantage),” Hontiveros said.