The Market Monitor Minding the Nation's Business
Senate Majority Leader Francis Tolentino urged the Energy Regulatory Commission (ERC) on Friday to address long-standing issues with power rate resets, particularly its handling of the Manila Electric Corp.’s (Meralco) rate reset process.
Tolentino criticized the ERC’s inaction, noting that Meralco’s last rate reset expired in 2015 and the commission only allowed the withdrawal of Meralco’s rate reset application on October 30, nearly a decade later.
“It’s concerning that the ERC, under both past and present leadership, has failed to address this issue. Why has it taken so long for them to act on this overdue rate reset? It should have been done by 2015, but instead, they let it drag on,” he said.
He also expressed frustration over the ERC’s failure to implement timely rate reviews and establish rules for setting distribution wheeling rates, which he said are crucial for protecting consumer welfare.
“As a government agency, the ERC must be vigilant and proactive in safeguarding the public’s interest. They can’t afford to be complacent while consumers suffer from inefficiencies and exploitation in the power sector,” Tolentino said.
The senator called on the ERC to ensure transparency, accountability, and responsiveness in its operations, emphasizing the importance of protecting the hard-earned money of Filipino consumers.
“Every peso our countrymen earn comes from their hard work, and they deserve an ERC that does its job to ensure fair electricity charges,” he added.
Tolentino also urged the ERC to handle Meralco’s refund process for overcharged fees “promptly and transparently.”
Recently, the ERC directed Meralco to refund P987.16 million for improper charges related to rate resets. An additional P189.98 million is set to be refunded by 16 other distribution utilities, bringing the total refund to approximately P1.177 billion.
These fees were collected despite the absence of a formal regulatory reset, with costs instead covered by the government budget.