Tolentino nudges ERC over 'inaction' on power rate resets


Senator Francis Tolentino criticized the Energy Regulatory Commission (ERC) for its apparent inefficiency in managing power rate resets.

Tolentino has expressed serious concerns over the agency, noting how it handled the rate reset process for Manila Electric Co. (Meralco), zeroing in on its lack of action on Meralco’s case in nearly 10 years, having granted Meralco’s request to withdraw its rate reset application last Oct. 30 when the company’s last rate reset lapsed in 2015.

“It’s troubling that the ERC, under both past and present leaderships, has failed to tackle this issue. Why has it taken so long for them to act on the long overdue rate reset process? Dapat ito ay nagawa pa noong 2015, pero hinayaan nilang tumagal, tinulugan lamang nila, kaya hindi na akma ang singilan nila sa ating kuryente (It should have taken action before July 2022, but it allowed the issue to drag on. In short, they were caught napping),” Tolentino said.

He also emphasized that while the ERC has a crucial role to uphold consumer welfare, it failed to provide a proper and timely rate review due to lack of rules for setting the distribution wheeling rates.

"As a government agency, the ERC must be vigilant and proactive in safeguarding public interests. They cannot afford to be complacent while consumers are exposed to its inefficiencies and exploitation from the power sector," he stated.

Because of this, Tolentino called for immediate action from the ERC to ensure accountability and transparency in its operations.

He stressed Filipinos deserve a regulatory body that acts swiftly and effectively to protect their rights and interests.

”Bawat piso ng ating kababayan ay mula sa dugo’t pawis nilang pagtatrabaho para lamang may maipantawid sa araw-araw, sana naman gawin ng ERC ang kanilang tungkulin para masiguradong tama at naayon ang singilan sa kuryente (Our fellow Filipinos worked hard to earn each peso to make ends meet. The least the ERC can do is to do its job),” he said.

Meanwhile, Tolentino urged the ERC to ensure the processes in the refund of Meralco customers are timely and transparent. ERC recently ordered Meralco to refund some P987.16 million to its customers for improperly charged fees related to regulatory rate resets.

Some 16 other distribution utilities are expected to return to consumers a total of P189.98 million, bringing the total refund amount to around P1.1777 billion. These fees were collected despite no actual regulatory reset taking place, with costs instead covered by the government’s budget.

“ERC must take proactive measures to prevent such issues from recurring and to uphold its responsibility to protect the consumers welfare,” he stressed.