Meralco appeals ERC order on P 200-million relief for poor

MANILA, Philippines — The Manila Electric Co. (Meralco) is asking the Energy Regulatory Commission (ERC) to reconsider an order for the distribution giant to relieve low-income residential consumers of a total of more than P200 million, to provide the so-called lifeline customers a respite from the economic impact of the coronavirus pandemic.

However, Meralco said on Monday it had paid a P19-million fine, which the ERC meted out for the company’s failure to comply with several directives that the regulator issued during enhanced community quarantine (ECQ) and modified ECQ.

“[We] filed a motion for partial reconsideration with respect to the directive to provide a retail rate discount to lifeline customers,” the company disclosed to the Philippine Stock Exchange.

“Pending the resolution of the [motion], Meralco will implement the retail rate discount in its October 2020 billing,” the company added.

Last Aug. 27, Meralco said it was looking at available legal remedies to this ERC decision, saying that it has “fully complied” with the concerned advisories issued by the ERC.

On the same day, in a statement explaining the decision, the ERC said it directed Meralco to “set to zero”—for one monthly billing only—the collection of distribution, supply and metering charges in the bills that will be issued to lifeline customers—referring to households who are billed for no more than 100 kilowatt-hours a month.

Based on ERC calculations, this discount for lifeline customers amounts to at least P200 million.

“It is our position that there is no basis to impose that on Meralco,” company spokesperson Joe Zaldarriaga told the Inquirer. “Nonetheless, we committed to implement the retail rate discount in the October 2020 billing subject to the resolution of the [motion for partial reconsideration].”

In August, Meralco president Ray Espinosa told the House of Representatives’ committee on good government and public accountability that the company was preparing to provide relief to their lifeline customers, in answer to a suggestion from Speaker Alan Peter Cayetano.