Meralco consumers slam bill deposit

Manila Standard Today
By Alena Mae S. Flores | Posted on Oct. 12, 2012 at 12:01am

A group of electricity consumers called on government regulators on Thursday to stop the Manila Electric Co.  monopoly from implementing a higher “bill deposit” that company officials said would be reflected in their billing for October.

The National Association of Electricity Consumers for Reforms said the deposit, which serves as security against unpaid bills, was illegal because it was arbitrarily imposed.

“We urge the Energy Regulatory Commission to exercise its powers by directing Meralco to explain why no administrative penalty should be imposed or criminal action instituted against its directors and officers for the violation,” Nasecore President Pete Ilagan said.

The bill deposit is another fee together with the meter deposit that consumers pay when they apply for Meralco connection. It is based on the consumers’ declaration of consumption and the appliances he will use in his house.

A Meralco notice said the average monthly bill for the past 12 months would serve as the basis for the bill deposit. If the initial bill deposit is lower than the average monthly consumption, the consumer will be required to pay the deficit, “or we will be constrained to disconnect your service without further notice.”

Ilagan said Meralco violated the law because it failed to give consumers “due process” when it arbitrarily imposed the increase on the bill deposits.

“What Meralco needs is a regulatory audit to determine whether it deserves an increase or decrease for that matter,” he said.

Ilagan said the customer bill deposits earned annual interest and Meralco failed to inform customers of any increase on account of the annual interest accumulated over the years.

“Meralco has failed to inform its more than four million consumers of their right to a refund on bill deposits that allows a customer who has paid his electric bills on or before due date for three consecutive years to demand for the full refund of the deposit even prior to termination of his service,” Ilagan said.

ERC Executive Director Francis Saturnino Juan said Meralco officials were summoned on Thursday to explain the increase in the bill deposits because of the hardship those could cause to consumers.

“ERC is cognizant of the hardships caused by Meralco’s implementation of the adjustment to the bill deposits. We called Meralco to discuss the matter and discuss how these hardships can be mitigated if not avoided,” Saturnino said.    source