Meralco settles P19-M fine; appeals retail rate discount

The Manila Electric Co. (Meralco) said it has paid the P19-million fine imposed by the Energy Regulatory Commission (ERC) for violating advisories on how distribution utilities should deal with customers during the lockdowns.

In a regulatory filing, the Pangilinan-led firm said it settled the penalty, but appealed the directive to provide a retail rate discount to lifeline customers.

"Pending the resolution of the Motion for Partial Reconsideration, Meralco will implement the retail rate discount in its October 2020 billing," it said.

Under the Meralco payment scheme, lifeline customers or low-income customers, as well as senior citizens, who consumer up to 100 kilowatt-hours in a given month can enjoy discounts of up to 5% which is subsidized by all other customers.

To recall, the ERC in August ordered Meralco to pay P19 million in fines, particularly for the company's failure to clearly indicate that the bills were estimated and failure to comply with the mandated installment payment arrangement during the quarantine period.

Meralco president and chief executive officer Ray Espinosa in August also said the company will provide relief to 2.77 million customers.

"Kami ay magbibigay ng relief or ayuda sa kanila equivalent to a total of P101 million mula sa aming distribution charge. Ang pagbabasehan namin dito ay ang mga lifeline customers as of February 2020," Espinosa said.

"Ito ay ibibigay natin sa lahat sa kanila. So makakatanggap sila ng diskwento sa kanilang distribution charge equivalent to a total of P101 million. Yan ay ibibigay natin as an additional credit sa kanilang bills na darating," he added.

Meralco has since extended its no disconnection policy until the end of October, from the initial date of August 31. — Jon Viktor D. Cabuenas/RSJ, GMA News