ERC slaps P19-million fine on MERALCO for billing violations
Photo Credit: ERC Official Website
The Energy Regulatory Commission (ERC) on Thursday announced the imposition of a P19 million fine on the Manila Electric Company (MERALCO) for violating its advisories related to the company's electricity bills.
In its decision dated August 20, the ERC said MERALCO failed to clearly indicate that the bills were based on estimates and that it did not comply with the mandated installment payment arrangement for customers.
ERC Chairperson and CEO Agnes Devanadera said the commission issued advisories to MERALCO to help alleviate the financial burden of electricity consumers while under community quarantine measures implemented by the government. Consumers however filed a number of complaints, indicating non-compliance by the electric company.
“MERALCO’s neglect to provide accurate and timely information especially during this time of pandemic has created chaos and confusion for most of the electricity consuming public," Devanadera said.
The ERC looked at the following in its evaluation:
Billing statements from the consumer complaints filed with its Consumer Affairs Division
Billing statements from its employees
Billing statements forwarded to it by the Office of Senator Sherwin T. Gatchalian
Billing statements sent by the National Association of Electricity Consumers for Reforms, Inc. (NASECORE)
The ERC said it imposed on MERALCO a basic penalty of P100,000 multiplied by the number of infractions committed, which the commission based on the number of days the company violated the advisories. This was 190 days.
In addition, ERC directed MERALCO to set to zero the Distribution, Supply, and Metering (DSM) charges of lifeline consumers whose monthly energy consumption does not exceed 100 kWh for one month.
"The said retail rate discount will provide temporary economic relief to more than two million lifeline consumers and their family members at least for a month. The DSM comprised 22.4% of the total retail rate," the agency said.
The ERC said the total discount to be provided to all lifeline consumers is estimated at P200 million. The agency also prohibited MERALCO from collecting from non-lifeline consumers in order to make up for this discount.
In its decision dated August 20, the ERC said MERALCO failed to clearly indicate that the bills were based on estimates and that it did not comply with the mandated installment payment arrangement for customers.
ERC Chairperson and CEO Agnes Devanadera said the commission issued advisories to MERALCO to help alleviate the financial burden of electricity consumers while under community quarantine measures implemented by the government. Consumers however filed a number of complaints, indicating non-compliance by the electric company.
“MERALCO’s neglect to provide accurate and timely information especially during this time of pandemic has created chaos and confusion for most of the electricity consuming public," Devanadera said.
The ERC looked at the following in its evaluation:
Billing statements from the consumer complaints filed with its Consumer Affairs Division
Billing statements from its employees
Billing statements forwarded to it by the Office of Senator Sherwin T. Gatchalian
Billing statements sent by the National Association of Electricity Consumers for Reforms, Inc. (NASECORE)
The ERC said it imposed on MERALCO a basic penalty of P100,000 multiplied by the number of infractions committed, which the commission based on the number of days the company violated the advisories. This was 190 days.
In addition, ERC directed MERALCO to set to zero the Distribution, Supply, and Metering (DSM) charges of lifeline consumers whose monthly energy consumption does not exceed 100 kWh for one month.
"The said retail rate discount will provide temporary economic relief to more than two million lifeline consumers and their family members at least for a month. The DSM comprised 22.4% of the total retail rate," the agency said.
The ERC said the total discount to be provided to all lifeline consumers is estimated at P200 million. The agency also prohibited MERALCO from collecting from non-lifeline consumers in order to make up for this discount.
