August 6, 2019 | 10:04 pm
THE Supreme Court
(SC) has asked the Energy Regulatory Commission (ERC) and the Manila Electric
Co. (Meralco) to comment on the petition filed by the Makabayan bloc last April
questioning the bill deposits collected by Meralco from its consumers.
In a notice released to
media on Tuesday, the SC gave ERC, Meralco and the Commission on Audit to file
comment within 10 days upon receipt of the resolution.
The Makabayan bloc in
April asked the High Court to stop Meralco from collecting bill deposits from
its customers as it was not allowed under the Electric Power Industry Reform
Act (EPIRA) and the franchise of Meralco.
The legislators noted
that under EPIRA, distribution utilities are only allowed to impose
distribution wheeling charges and connection fees as approved by the ERC.
Distribution utilities
are also required to supply power in the “least cost manner,” they said.
Meralco has collected
P29-billion worth of bill deposits based on its 2018 audited financial
statements.
The Makabayan bloc claims that ERC’s authorization of bill deposit only
promotes the interests of distribution utilities and “ensures their profit, to
the prejudice of customers.”
The group also asked
the court to order ERC to order a refund of bill deposits and the Commission on
Audit to verify all bill deposits collected.
The Makabayan bloc also
said the imposition of bill deposit is inconsistent with the promotion of
consumer interests in the Magna Carta for Residential Electricity Consumers
promulgated by the ERC in 2004.
Under the Magna Carta,
consumers are required to pay bill deposits equivalent to the estimated billing
for one month when applying for connection. It should be refunded within a
month after termination of service as long as all bills have been paid while
customers who have paid bills on time for three years can apply for a refund.
They also cited the
findings of the Office of the Ombudsman that the bill deposit of Meralco has
been “commingled” and used to finance capital and operation costs, thereby
endangering consumers’ right to a refund. — Vann Marlo M. Villegas
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