Ex-ERC official asks CA for recomputation of Meralco rates

A former commissioner of the Energy Regulatory Commission (ERC) has filed a petition asking the Court of Appeals to recompute the rate charges of Meralco, which amounts to a total refund of P160 billion.

In a 33-page petition for review, former ERC commissioner Alfredo Non said the actual weighted average tariff (AWAT) billed by Meralco should have an independent audit, instead of just comparing the AWAT with reports submitted by Meralco to ERC.

Non said that according to his computation, the ERC's decision and order that required Meralco to refund P40.5 billion to its customers is only equivalent to 25% of the supposed total refund.

The petition noted alleged errors in Meralco's computation, which was applied across the third regulatory period (2012-2015). It said the ERC has not conducted a regulatory reset for Meralco.

"It is my position in the petition filed that the effects of the methodology used by ERC and MERALCO opens much distress for consumers. While balancing the interest of capital and consumers is important for a balanced economy, it necessitates that consumers are protected from exorbitant rates of collection and more so entitle them to rebates for overcharges that they are due," Non said in a statement.

Non cited ERC's decision dated June 22, 2024, and order dated Jan. 25, 2024, which resolved Meralco's recomputation of rates.

He asserted that in resolving Meralco's petition, the final rate adopted was "arbitrarily" determined contrary to EPIRA requirements; the ERC ignored other nondiscriminatory alternative approaches; and the ERC decision ran counter to consumer interests and instead lead to Meralco's unjust enrichment.

GMA News Online has requested comment from Meralco and the ERC regarding the matter.

Earlier, the power distributor said the ERC has reviewed and approved charges that reflect on its consumers' bills, adding that it follows the mandate of the ERC on cost adjustments arising from regular reviews. Meralco has also that it operates aboveboard and is compliant with laws.

Non previously said Meralco owed its customers a refund based on a re-computation of its weighted average cost of capital (WACC).

Meralco's WACC has been at 14.97% since 2015.

Laguna Representative Dan Fernandez has also claimed that the unadjusted WACC is the key reason for Meralco's high power rates.

Fernandez said that Meralco's WACC should be 9.62% since the company's power distributor already covered 70% of Luzon.

The petition also called on Congress not to rush the renewal of Meralco's franchise, pending the resolution. — VDV, GMA Integrated News