MANILA – Senate Deputy Minority Leader Risa Hontiveros demanded on Wednesday (22 Jan 2025) that Manila Electric Co. (Meralco) refund an estimated PHP100 billion in alleged overcharges to consumers before Congress considers renewing its legislative franchise.
In her recent interpellation on Meralco’s proposed franchise renewal, Hontiveros pledged to push for a Senate investigation into the utility company’s pricing practices before any extension is granted.
“Meralco’s franchise doesn’t expire until 2028, giving ample time to correct these wrongs and refund every peso unjustly collected from consumers,” Hontiveros said in a statement.
The senator accused Meralco of inflating electricity prices through various tactics, including the use of a higher weighted average cost of capital (WACC), overstating its regulatory asset base, and charging consumers twice for inflation since 2012.
“These practices have led consumers to pay far more than necessary while Meralco enjoys windfall profits,” Hontiveros explained.
As the country’s largest distribution utility, Meralco should be working in partnership with the government to ensure affordable and reliable electricity for all, she said, rather than violating regulations to maximize its profits.
Hontiveros also called on the Energy Regulatory Commission to guarantee that electricity is delivered at the lowest possible cost, free of unnecessary charges.
To address the issue, she plans to file a Senate resolution urging the Committee on Energy to investigate the alleged overcharges, highlighting the need for a “full, fair, and transparent accounting” that prioritizes the interests of consumers.
ia/mnm
