Penalties imposed by ERC on Meralco ‘reasonable’ –Gatchalian

Senator Sherwin Gatchalian said on Sunday that the penalties imposed by the Energy Regulatory Commission (ERC) on the Manila Electric Company (Meralco) over the sudden spike in their customers' electric bills were "reasonable."

In a Dobol B sa News TV interview, Gatchalian, who chairs the Senate Committee on Energy, said the penalty on Meralco was almost equivalent to P300 million, as it included the discounts that would be given to the utility company's "lifeline" customers, or those who consume 100 kWh and less.

The ERC had slapped a P19-million fine against Meralco for its alleged violations on advisories issued by the regulator during the community quarantine period starting in March until July, particularly the company’s “failure to clearly indicate that the bills were estimated” and “failure to comply with the mandated installment payment arrangement.”

"Pero binasa ko yung resolution at meron doon na magbibigay ng diskwento sa mga lifeline... at ang sabi doon, bibigyan sila ng diskwento na nagkakahalaga ng almost P1.9 per kWh," Gatchalian said

"Kung susumuhin mo, lahat-lahat lalabas yan mga P300 million. Tingin ko naman ito ay reasonable sa paglabag ng mga direktiba," he added.

Meralco Head for Regulatory Management Atty. Jose Ronald Valles said the distribution utility “will study the order and we will file the appropriate pleading after consultation with our lawyers.”

But Gatchalian said there was no need for Meralco to study the order as it was already in the ERC resolution.

"Ang payo ko sa kanila huwag na ilaban. Kasi para sa akin ito ay reasonable na pagmumulta sa kanila," he said.

"Kapag lumaban sila ia-advise natin ang ERC na taasan na lang at maghanap pa ng ibang paraan para ma-penalize sila," he added.

Meralco customers were surprised unusually high electricity bills in May. The issue had been the subject of a series of Senate and House of Representatives hearings.

The power distributor has since explained that the May bill consists of actual consumption for the month plus the estimated consumption in March and April —which was computed based on the average three-month consumption prior to the quarantine. — DVM, GMA News