Roughly 2.77 million lifeline customers of Manila Electric Company (Meralco) will experience discounts ranging from P114 to P206 in their electric bills next month, in line with the utility firm’s implementation of part of the sanctions enforced upon it by the Energy Regulatory Commission.
Based on the company’s calculation, if the distribution, supply and metering (DSM) charges of the lifeline users will be set to zero, the total discount for households with 100 kilowatt hours (kwhs) of consumption will be as much as P206.47; while those in the 70kwh level can enjoy discount of P151.05.
Further, the marginalized consumers with usage of 50 kwh will be freed of paying P114.10 worth of DSM charges in their electric bills next month.
“The said retail rate discount will provide temporary economic relief to more than 2.0 million lifeline consumers and their family members at least for a month,” the ERC has stated in its ruling.
Apart from paying the upfront fine of P19 million, Meralco indicated that it will reflect the mandated retail rate discounts to lifeline customers in its October billing.
The company noted that while it filed a motion for partial reconsideration with respect to the ordered discounts to lifeline end-users, it will still implement the ERC directive even while its pleading is still at its pendency.
It has to be noted that the ERC ordered Meralco last month to extend aggregate discount of P200 million plus to all of its lifeline consumers. This shall cover end-users with base consumption of zero to 100 kilowatt hours.
Based on the regulatory body’s calculation, the DSM comprised of 22.4-percent of the total retail rate being billed to consumers on a monthly basis.
The imposition of the P19 million fine and the mandated discount stemmed from Meralco’ s alleged breaches of the advisories issued by the ERC when enhanced community quarantine (ECQ) and modified enhanced community quarantine (MECQ) lockdown measures were enforced in Luzon from March to May this year.
The ERC ruled that the utility firm failed “to clearly indicate that the bills were estimated,” and it has also been allegedly remiss in implementing installment payment arrangements for its customers.
“Meralco’s neglect to provide accurate and timely information especially during this time of pandemic has created chaos and confusion to most of the electricity consuming public,” the regulatory body said.
The estimated billings had been resorted to during the lockdown months because actual meter readings were not done because of the movement restrictions imposed by the government.
After complying with the directed discounts to its lifeline customers, Meralco is likewise required to submit a compliance report within 15 days; and such must contain information on total number of customers benefited; as well as total amount of discount extended.