Meralco rate-setting confusion is ERC's fault--Rodriguez
At A Glance
- The confusion and misinformation on the rate-setting process of the Manila Electric Company (Meralco) and other power distributors in the country are all the Energy Regulatory Commission's (ERC) fault, said Cagayan de Oro 2nd district Rep. Rufus Rodriguez.
(Unsplash)
The confusion and misinformation on the rate-setting process of the Manila Electric Company (Meralco) and other power distributors in the country are all the Energy Regulatory Commission's (ERC) fault.
Thus, said Cagayan de Oro 2nd district Rep. Rufus Rodriguez, a supporter of the sought franchise renewal of Meralco before the House Committee on Legislative Franchises.
“We found the root cause of the high rate issues hounding Meralco, and it is indeed regulatory inaction which already caused so much unnecessary noise, precisely because of the highly technical nature and of electricity rates,” Rodriguez said in a statement Saturday, June 29..
“As the regulator, it ultimately has the huge responsibility to ensure timely implementation of rate review and approval as this assures customers that the rates they are paying are fair and reasonable,” he noted.
The ERC recently ruled with finality on the rate application of Meralco for the Lapsed Period — or from 2015 to 2022 — when there was no completed rate reset not just for Meralco but also for other distributors.
Rodriguez said customers of Meralco already benefitted in terms of the close to P50 billion refund, which was triggered by Meralco’s initiative to have its rates reviewed despite the absence of rules and rate reset for about seven years.
“The recent ruling of the majority of the ERC commissioners is a win for consumers as this paves the way for the regulatory body on other rate applications by other distribution utilities pending before them that will likely result in refunds to consumers, and similarly allow ERC to proceed with the rate reset process,” said the Mindanaoan.
He added that the ERC exercised its quasi-judicial rate-setting power to fix the problem with absence of Meralco’s rate review
The veteran lawmaker also hit the dissenting opinion on the decision and asked all ERC commissioners to always consider the impact of their delayed actions and inaction not just on distribution utilities like Meralco and also to the paying consumers.
“The ERC should always keep in mind that its mandate to deliver timely and value-driven public service by ensuring a working and stable regulatory environment,” Rodriguez concluded.
The rate-setting issue has been raised by House members who are opposing Meralco’s franchise renewal application. Meralco’s existing franchise will expire in 2028.