P3.9-B Meralco refund won't ease consumers' burden - Mikey

The P3.9-billion refund the Energy Regulatory Commission has ordered the Lopez-owned Manila Electric Co. to pay back its customers will not ease the burden of the consuming public, President Arroyo’s lawmaker-son, Pampanga Rep. Juan Miguel “Mikey” Arroyo said.

Arroyo, chairman of the House committee on energy, said he believes the refund order of ERC chairman Zenaida Ducut - his townmate in Lubao and predecessor in Congress - “won’t serve its purpose to appease the public.”

“The ERC should present clearly the certifications that would justify the new distribution supply and metering charges,” the young lawmaker said, in light of reports Meralco is about to raise its power rates, at an average of 14 cents per kilowatt hour.

“If the ERC fails to do so, ERC will be accountable to the consumers,” Arroyo warned.

The ERC found Meralco, the largest power distributor in the country, to have overcharged its more than four million customers some P3.9 billion, for more than three years - from June 2003 to December 2006.

At the same time, Manila Congressman Amado Bagatsing warned that the Lopezes may end up holding a revoked Congressional franchise for Meralco if it still fails to comply with the ERC order to refund its consumers P3.9 billion in overcharged power rates.

“Franchises may be revoked by Congress for lesser offenses than what Meralco faces at present,” Bagatsing warned after the country’s largest power distributor urged ERC to defer the refund order.

The administration lawmaker, described the excuses of Meralco as “hollow and lame, considering that it can liquidate some of its assets and those of its subsidiary companies to meet its obligations to consumers.”

“Thus, the management of Meralco must not take a cavalier stance on this matter,” he said.

Bagatsing cautioned that Meralco consumers can “move to attach some properties (of Meralco) to cover the P3.9-billion refund arising from Meralco’s overcharges under its currency exchange rate adjustment (CERA) for the period 2003 to 2006.

He said Meralco cannot put its other obligations over and above those of its 4.4 million customers since the latter serve as its lifeblood. “Consumers seem to be at the bottom of its priorities and it doesn’t speak well of a firm that was given a franchise imbued with public interest.”

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