MANILA — Senator Risa Hontiveros has called for the Manila Electric Company (Meralco) to refund an estimated P100 billion in alleged overcharges collected from consumers over the years. This comes amid ongoing discussions in the Senate regarding Meralco’s franchise renewal.

Errors Must Be Corrected Before Renewing Franchise – Hontiveros

During a recent interpellation, Hontiveros criticized Meralco for inflating electricity prices, highlighting the company’s use of an excessively high nominal weighted average cost of capital (WACC).

According to Hontiveros, the higher WACC means consumers are paying far more than necessary, while Meralco rakes in large windfall profits. She also pointed to Meralco’s alleged overstating of its regulatory asset base (RAB) and charging consumers for inflation twice since 2012.

“Before Meralco is granted a franchise renewal, the errors must be corrected, and they must be held accountable for billions in overcharges. Meralco’s franchise does not expire until 2028, giving the company ample time to stop unfair practices and refund every peso unjustly taken from consumers,” Hontiveros said.

The senator attributed Meralco’s actions to the Energy Regulatory Commission’s (ERC) failure to regulate effectively, which has allowed the distribution giant to impose unnecessary charges. Hontiveros pledged to file a Senate resolution urging an investigation into Meralco’s overcollections to ensure transparency and fairness for consumers.

“Bilang pinakamalaking distribution utility ng ating bansa, katulong dapat ng pamahalaan ang Meralco sa paghatid ng mura at maasahan na suplay ng kuryente. Kaso, mukhang mismong Meralco pa ang sumusuway sa mga regulasyon sa ngalan ng mas malaking kita. Karapatan ng taumbayan na maibalik sa atin ang bawat piso na dapat isoli ng Meralco,” she concluded.

SB 2824 Should Also Stress3 Need for Accountability

Meanwhile, Senator Joel Villanueva, sponsor of Senate Bill No. 2824 to renew Meralco’s franchise, expressed hope for the bill’s passage on second reading before the Senate breaks on February 8. Villanueva emphasized the importance of Meralco’s role in providing electricity to millions of consumers, but also stressed the need for continued accountability.

“Meralco has long been a partner in our nation’s progress, but with that partnership come accountability. This bill ensures that Meralco continues to meet the needs of our people while preparing for the challenges and opportunities of the future,” Villanueva said.

He also mentioned that the Senate could soon move to amend the bill after the interpellation phase, noting that the bill’s approval is expected to progress without significant hurdles, as many senators recognize the importance of uninterrupted service to 8 million consumers.

“Higit sa lahat yung interruption; ’di natin pwedeng ma-interrupt itong serbisyo ng Meralco to 8 million consumers,” Villanueva added.

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