Meralco rate regulator now handling Maynilad petition – Enrile

Re-electionist Sen. Juan Ponce Enrile charged yesterday that the regulator responsible for passing on the Lopez-controlled Manila Electric Co.’s income taxes and other onerous rate adjustments to consumers is the same regulator handling the petition to increase the water rates of Maynilad, another Lopez-owned utility firm.

Enrile, leading opponent of the Omnibus Power Reform Act, expressed concern over "blatant" attempts of Maynilad to automatically increase rates and effectively change its contract terms with the participation of former Energy Regulatory Board chairman Rex Tantiongco as regulator of water utilities in Metro Manila.

He recalled that it was during the term of Tantiongco at the ERB that Meralco got official blessing for its return-on-rate base abuses.

"It is happening again. The Lopez-controlled Meralco was able to make consumers pay for overpriced electricity and their income taxes under then ERB chairman Tantiongco. Now, the same official has been reported by the Freedom from Debt Coalition to be behind the Lopez-owned Maynilad contract to more favorable, lucrative terms," Enrile said.

He said that it is not mere coincidence that Tantiongco is the regulator of public utility firms owned by the Lopezes.

"It is, rather, a crude manipulation and travesty of the laws governing the state’s regulatory power to protect consumers against undue exploitation of public utility companies like Meralco and Maynilad for Tantiongco to again end up being the regulator of a public utility owned by the Lopezes," Enrile added.

He expressed full support for FDC’s call for review of the Maynilad contract and ensure that no changes are made in the original terms of the bidding "as this would be unfair to other bidders."

He asked President Arroyo to determine if retaining Tantiongco as MWSS regulator serves the public interest "given his apparent cozy relationship with the Lopezes." – Efren Danao