Meralco discount for lifeline users
Meralco said it has settled the amount a month after the ERC imposed the penalties. The electricity retailer, however, wanted the regulator to reconsider the second component of the fine
The Manila Electric Company (Meralco), the country’s biggest distribution utility, on Monday said it has paid the P19-million fine imposed by the Energy Regulatory Commission (ERC) for allegedly violating billing advisories during the coronavirus lockdown period, which resulted in “bill shocks.”
Meralco said it has settled the amount a month after the ERC imposed the penalties. The electricity retailer, however, wanted the regulator to reconsider the second component of the fine.
“Meralco filed a Motion for Partial Reconsideration (concerning) the directive to provide a retail rate discount to lifeline customers,” Meralco told the local bourse. The company was referring to the discounted rate given to lowincome households that cannot afford to pay at full cost.
The ERC previously directed Meralco to set the charges to zero
for a month for some two million “lifeline” or low-income customers who use less than 100 kilowatt hours of energy, to provide them relief amid the health and economic crisis.
The total discount to be provided to all lifeline consumers was estimated to be around P200 million, which should not be charged to the non-lifeline consumers.
Meralco earlier announced it would voluntary provide power rate discount totaling P101 million as relief to 2.77 million lifeline customers to mitigate the impact of the health crisis.
Meralco filed a Motion for Partial Reconsideration concerning the directive to provide a retail rate discount to lifeline customers.
The ERC pointed out that Meralco failed to inform consumers that their electricity bills were “estimated” during the strict quarantine period, or when restrictions prevented Meralco representatives from reading meters in households.
The ERC previously directed Meralco to set the charges to zero for a month for some two million lifeline or low-income customers who use less than 100 kilowatt hours of energy, to provide them with relief amid the health and economic crisis.
According to ERC chief Agnes Devanadera, Meralco also violated the installment payment scheme mandated by the commission, adding that the firm’s neglect “created chaos and confusion” among the public.
The backlash from customers over the power rates during the quarantine period has prompted the ERC, the Department of Energy and lawmakers to conduct separate probes.
Meralco has since apologized for the bill shock and assured lawmakers that customers were only charged for the actual electricity they consumed.