Press Release
September 1, 2020

HONTIVEROS URGES ERC TO INTENSIFY MEASURES TO PREVENT FUTURE BILL SHOCKS

"Isang systematic at smarter mechanism ang dapat iimplementa para masiguradong hindi na mauulit ang bill shock na nagpa-stress sa mga electric consumers."

This was the statement of Senator Risa Hontiveros as she urged Energy Regulatory Commission (ERC) to put in place reforms to avoid the repeat of 'bill shock' of Meralco consumers in Metro Manila and prepare the power industry against future shocks.

During the hearing of Senate Committee on Energy on the proposed extension of lifeline subsidy, Hontiveros noted that the fine imposed on Meralco due to its failure to clearly state estimated billings and failure to allow customers to pay in installments, is just a minor sanction, given the high profits from high power rates that continue to burden consumers.

"Ano mang panahon, may pandemya o wala, dapat siguraduhing walang nananamantala. Bagama't welcome ang penalty na ito, ang P19-M na nawala sa bulsa ng Meralco ay katiting lang kumpara sa bilyun-bilyon nilang kinikita. I-moderate natin ang kasakimang ito para mas malaking ginhawa sa mga konsyumer." she said.

The Senator explained that ERC can put in place smarter systems that can address billing problems during emergencies and the need for a shift to renewable energy. The development and transition to smart grid and micro-grid systems in which people can manage their own resources and their demands for energy.

"Tiyak na maraming karanasan at pag-aaral tungkol sa operation ng smart grids, smart metering systems, at renewable energy. Pero ano pa mang sistema, alam naman natin na ang 'greed' ay hindi nababagong basta ng teknolohiya. Tungkulin ng regulatory body gaya ng ERC na siguraduhing walang industry players ang nanlalamang." concluded Hontiveros.

Hontiveros stated that aside from the bill shock, Meralco and the National Grid Corporation of the Philippines (NGCP) were hounded by a persistent issue of enjoying higher return on capital due to costly power rates, the same issue raised by the senator during the previous hearings on the Chinese control of NGCP.

"NCGP enjoys a 15 % weighted average capital (WACC) which is almost twice the global average of 8%. Meralco, on the other hand, enjoys more than 15% under the performance-based rate (PBR) methodology approved by the ERC." she said. "Review of power rate increase applications should also be extra rigorous and carefully evaluated."

"In this difficult and trying times everyone should stand side-by-side with our consumers. Dapat busisiin at tingnan kung sumusunod at nagko-comply ang major industry players sa obligasyon nito. Hindi dapat sinasamantala at pinagkakakitaan ng mga industriyang ito ang maliliit na konsyumer na ngayo'y dapang-dapa na dahil sa dagok ng pandemya," she concluded.

News Latest News Feed