The Trade Union Congress of the Philippines (TUCP) lambasts The Metropolitan Electric Railway and Light Company (Meralco) following its recent announcement of a rate increase this month of February, sparking outrage over the utility’s failure to first fully implement previously mandated refunds.
The TUCP, has criticized Meralco’s actions, stating, “It is unacceptable for Meralco to raise rates while failing to first fully return funds reportedly amounting to around ₱16 Billion, that are rightfully owed to consumers. This move demonstrates a blatant disregard for the financial well-being of Filipino families who are already struggling with the economic impact of the unabated rise in prices of commodities.”
“Meralco has long held on and utilized these funds that are supposed to have already been refunded to the consumers. Such action may already be tantamount to a form of estafa,” further stated TUCP.
Despite the evident financial strain on households due to rising costs of living, Meralco has opted to increase electricity rates, leaving many consumers bewildered and frustrated. Meralco said the increase was mainly driven by a ₱0.3845 per kWh rise in the generation charge due to higher costs from Independent Power Producers (IPPs) and Power Supply Agreements (PSAs). With the adjustment in place, residential customers consuming 200 kWh will see an increase of about ₱57.00 in their monthly bill.
This decision comes in stark contrast to the company’s previous commitments to return overcharges to its customers, as mandated by regulatory authorities. The refund in question, which was ordered by the Energy Regulatory Commission (ERC), was intended to compensate customers for overcharges stemming from fees collected supposedly for payment of technical experts for the periodical regulatory rate reset conducted by the ERC. However, no actual payments were made by Meralco as it did not engage the services of such experts. Meralco claims that the apparent delay in executing the said refund is due to the late scheduling of the ERC.
“Meralco is a public utility vested with public trust. But instead of prioritizing its customers and adhering to the directives set forth by the ERC, it engages in price gouging and outright profiteering” said TUCP. “Instead of imposing additional financial burdens, Meralco should be focused on rectifying past mistakes, ensuring fair pricing for all consumers and the prompt return of the excess charges it collected” added TUCP.
In light of this situation, TUCP is calling on the ERC to take immediate action to ensure that Meralco complies with the refund order first before approving any further rate increases. “The ERC should have no further cause for delay and order the immediate refund of these over-charges, including interests earned, to the consumers and not give Meralco any excuses ” said TUCP.
