THE TRADE Union Congress of the Philippines (TUCP) on Monday opposed Manila Electric Co.’s (Meralco) move to raise rates this month as this could add to the burden of increasing prices of basic goods and utilities.
“Despite the evident financial strain on households due to rising costs of living, Meralco has opted to increase electricity rates, leaving many consumers bewildered and frustrated,” the group said in a statement.
Last week, Meralco said the rates for this month would climb by P0.2834 per kilowatt-hour (kWh) to P12.0262 per kWh from P11.7428 per kWh in last month.
Customers with power consumption of 200 kWh will have to pay about P57 more in their electricity bills. Those consuming 300 kWh, 400 kWh and 500 kWh will have to pay an additional P85, P114 and P144, respectively, this month.
“This decision comes in stark contrast to the company’s previous commitments to return overcharges to its customers, as mandated by regulatory authorities,” TUCP said.
It added that the power distributor should refund Filipinos the P16 billion it owes them pending the Energy Regulatory Commission’s resolution of its fifth regulatory rate reset.
Ronnie L. Aperocho, Meralco’s executive vice-president and chief operating officer, did not immediately reply to a Viber message seeking comment.
Meralco earlier said the hike in the overall electricity rate was due to the increased generation charge, which rose by P0.3845 per kWh due to higher costs from independent power producers (IPP) and power supply agreements (PSA).
The power company had also proposed to refund about P19 billion in compliance with the ERC order in December that declared July 2022-June 2025 as a lapsed period that is part of its regulatory reset process.
“Meralco has long held on and utilized these funds that are supposed to have already been refunded to the consumers. Such action may already be tantamount to a form of estafa,” according to the labor group.
“Instead of imposing additional financial burdens, Meralco should be focused on rectifying past mistakes, ensuring fair pricing for all consumers and the prompt return of the excess charges it collected.”
Meralco’s controlling stakeholder, Beacon Electric Asset Holdings, Inc., is partly owned by PLDT Inc. Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has an interest in BusinessWorld through the Philippine Star Group, which it controls. — John Victor D. Ordoñez
