ERC backs Meralco on overbilling charge

The Energy Regulatory Commission (ERC) supported yesterday the Manila Electric Co. (Meralco) against the charges of former Sen. Juan Ponce Enrile on the power firm’s alleged over-billing and its allegedly paying a sister company for undelivered power.

Acting ERC chairman Leticia Ibay also told the Senate committee on public services headed by Sen. Joker Arroyo that records showed that the escalation of power rates in the contract between Meralco and First Gas questioned by Enrile was a recovery clause and did not result in any profit or loss to either.

Enrile used most of the time in yesterday’s hearing on the "super franchise" of Meralco to demonstrate what he claimed to be a collusion between Meralco and First Gas to make huge profits at the expense of the consumers.

He said Meralco was paying huge amounts to First Gas, an independent power producer, for little or no power produced.

Edgardo Delfonso, chairman of the Power Sector Assets and Liabilities Management, however, said that payment for power even when not used is a standard practice in the power industry under the usual take-or-pay clause. – Efren Danao