Advocacy group says Meralco rates are fair

MANILA, Philippines - An advocacy group declared yesterday that the power rates charged by the Manila Electric Co. (Meralco) for the years 2004 to 2007 are “fair and reasonable” since setting such rates had gone through public hearings, studies and approval by the electric power industry regulator, the Energy Regulatory Commission (ERC).

“There is no way the customers can be charged more than what is allowed, since the power industry is closely supervised and monitored by the ERC,” said CPI Organizational Studies and Advocacy (COSA) chief advocacy officer lawyer Rafael Dela Torre.

Dela Torre issued the statement on the heels of a recently published report of the Commission on Audit (COA) claiming that a number of items should not have been included in the computation of the unbundled power rates from 2004 to 2007.

“The COA report just represents the opinion of the government auditors and their appreciation of the facts concerning some items included in the operating costs of Meralco, and they do not necessarily represent the view of the ERC,” asserted Dela Torre, who added that the final say rests on the industry regulator.

The advocacy group agreed with Malacanang’s earlier statement that it is the ERC that is empowered to decide on power rates, not COA — since COA “is only an audit body, not an adjudicating one.”

The chief advocate also took exception to the “facetious statement” that overcharging was done by the Lopez Family. “This is patently unfair to the Lopezes,” said Dela Torre, who stressed: “I have closely followed the Lopezes and their track record in doing business, and they have unsullied reputation for good corporate governance and high ethical standards in business practice.”   

The lawyer took the government auditors to task who seem to be unfamiliar with the operations of an electric distribution company, because “they failed to note, for example, that a pension fund for employees is part and parcel of operations.”

Dela Torre, who was labor relations director of large companies, asserted that “manpower benefits are part of operational costs, because such benefits have direct bearing on motivation and productivity.” Besides, he added, such pension fund was part of the collective bargaining agreement between Meralco and its labor unions — an agreement that must be honored.

The audit body should have known that Meralco has become what it is in terms of excellent service because it has well-motivated people doing their job well.”