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

MANILA – Senator Joel Villanueva on Thursday expressed optimism about the approval of the Meralco franchise renewal bill by the Senate before the 19th Congress adjourns or even earlier.

“By Monday (Jan. 20), matatapos yung interpellations (interpellations are done), debates, and period of amendments,” Villanueva said during the regular Kapihan sa Senado media forum.

The chair of the Senate Subcommittee on Public Services handling Meralco franchise renewal bill said he expects the Senate to approve the measure on second reading before the February break.

When asked about potential roadblocks, Villanueva downplayed concerns, saying that no major opposition has emerged.

“Some senators, like Senators (Sherwin) Gatchalian and Jinggoy Estrada, requested additional information. If they’re satisfied with the submissions, they will no longer interpellate,” he said.

Villanueva said most senators plan to propose amendments rather than challenge the measure.

On the possibility of third-reading approval, Villanueva expressed confidence that it could happen within the 19th Congress, or even before the Senate’s election recess on Feb. 5.

“”Conservatively, matapos ang (we will finish the) second reading by next week. I will not even be surprised if we finish this before the break. Everything is possible,” he said.

Villanueva reiterated his commitment to seeing the bill through, underscoring the need for reliable energy services.

As a result of Senate scrutiny, Meralco initiated a rate reduction in January, decreasing costs by PHP0.2189 per kilowatt-hour, which translates to a savings of around PHP44 for residential consumers using 200 kilowatt-hours monthly.

Villanueva attributed the decrease to rigorous evaluation of power generation costs, the largest component of electricity rates.

The senator compared Meralco’s performance metrics with other electric utilities, noting its reliability.

Meralco achieved a System Average Interruption Frequency Index (SAIFI) of 1.19 interruptions annually, and a System Average Interruption Duration Index (SAIDI) of 123 minutes.

These figures outperform Davao Light and Power (525 SAIDI), and Panay Electric Company (1,978 SAIDI). (PNA)

MANILA – The Manila Electric Co. (Meralco) has announced an increase in electricity rates for its franchise areas in October.

Meralco stated that power rates within its franchise areas will rise by PHP0.4201 per kilowatt-hour (kWh), reaching PHP11.8198 per kWh compared to September’s PHP11.3997 per kWh.

Following the September hike, Meralco’s electricity charges now stand at PHP0.9207 per kWh more than the previous rates.

For residential customers consuming 200 kWh, this adjustment translates to an increase of approximately PHP84 in their overall electricity bill, according to Meralco.

The company attributes this month’s elevated electricity rates to an upsurge in generation charges, which have climbed to PHP7.1267 per kWh from August’s PHP6.8252 per kWh, an increase of PHP0.3015 per kWh. This increase is primarily due to higher collections from independent power producers (IPPs) and power supply agreements (PSAs), which have risen by PHP0.4599 per kWh and PHP0.1658 per kWh, respectively.

Meralco reported that gas supply restrictions from Malampaya have forced the First Gas plants in Sta. Rita and San Lorenzo to switch to more expensive alternative fuels. Additionally, the San Gabriel power plant experienced a forced shutdown from September 18 to 24 due to limited gas flow from the Malampaya natural gas field.

Rates from the Wholesale Electricity Spot Market (WESM) have also inched up slightly, with an increase of PHP0.0525 per kWh.

In September, Meralco sourced 47 percent of its power requirement from PSAs, 35 percent from IPPs, and 18 percent from WESM.

Furthermore, transmission and other charges imposed by Meralco have risen due to increased ancillary service fees.

On the bright side, Meralco’s distribution charges for residential customers have remained unchanged since August 2022. (ai/mnm)

Meralco must issue a written 48-hour notice to consumers before disconnection — SC

MANILA — The Supreme Court has ruled that Manila Electric Company (Meralco) is required to issue a 48-hour disconnection notice to consumers before cutting off their electric supply.

Meralco’s appeal against a Court of Appeals decision was rejected by the Supreme Court, upholding the violation of the Anti-Electricity and Electric Transmission Lines/Materials Pilferage Act of 1994 (Republic Act 7832).

The case originated from a complaint filed by Lucy Yu, who alleged that Meralco forcefully entered her office at the New Supersonic Industrial Corporation (NSIC) in Valenzuela City and disconnected the power without prior notice.

This resulted in power loss both at Yu’s residence and the NSIC factory.

In its official statement, the Supreme Court emphasized that Meralco must adhere to due process by providing a written notice to consumers at least 48 hours before disconnection.

The Court emphasized that Meralco’s failure to comply with this requirement constitutes a violation of the consumer’s right to due process.

Consequently, Meralco was presumed to have acted in bad faith during the disconnection of Yu’s electric service.

As a result of the ruling, Lucy Yu is entitled to receive compensation totaling P150,000. This includes P50,000 for temperate damages and P100,000 for exemplary damages. (ai/mtvn)