June 11, 2020 | 12:10 am
https://www.bworldonline.com/erc-to-meralco-explain-billing-violations/
MANILA Electric Co. (Meralco) was told to appear before the Energy Regulatory Commission (ERC) to explain its supposed violations of the regulator’s advisories on customer billings during the lockdown period.
The ERC on Wednesday said it had issued a show-cause order to the electricity distributor for defying certain orders of the commission that guided utilities on how to charge power users during the enhanced community quarantine and the modified lockdown.
“We cannot tolerate such non-compliance and any erring party must be held accountable for their actions or misactions,” ERC Chairperson and Chief Executive Officer Agnes VST Devanadera said in a statement.
In an order dated May 29, the commission said the listed utility violated its order on estimated billing, the implementation of the former staggered payment scheme, and the start of bills payments on May 30 for customers in areas under strict lockdown.
In response, the Philippines’ biggest electricity distributor maintained that it did not breach any government regulation despite being also hit by the pandemic.
“We believe that we have complied with the existing regulations and directives set by the regulator and we will explain in full to the Commission the basis for our actions and compliance,” Jose Ronald V. Valles, Meralco’s first vice president and head of Regulatory Management, said in a Viber message.
“We reiterate that Meralco has not violated any rule even if our operations were severely challenged by this pandemic,” the Meralco official added.
The company has been under fire for the high electricity charges in the past three months, computing bills based on customers’ estimated consumption from March to April, when meter reading activities were suspended, and actual usage in May.
Previously, the ERC allowed the estimated billing of customers’ power consumption by distribution utilities as meter readings were suspended, provided they comply with its distribution services and open access rules (DSOAR).
Meralco did so by estimating some March and all April bills using customers’ consumption in the past three months.
Following criticisms on such a scheme, the regulator told utilities on May 22 to conduct actual readings and to issue new bills.
Moreover, the ERC revised its earlier order to power distributors of allowing customers to pay their unpaid bills during the lockdown months in four installments.
Now, customers with 200 kilowatt-hours (kWh) consumption and below in February can settle their unpaid bills in six portions starting mid-June, while those with usage above 200 kWh can pay their March-May bills in four installments.
Complying with this order, Meralco said on June 6 that its customers with unpaid bills will receive two statements: one for the installment bill and the other for their monthly bill.
Aside from the commission, the Department of Energy and legislators had called Meralco’s attention to explain the so-called “bill shock” experienced by consumers.
Meralco’s controlling stakeholder, Beacon Electric Asset Holdings, Inc., is partly owned by PLDT Inc. Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has interest in BusinessWorld through the Philippine Star Group, which it controls. — Adam J. Ang
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