Home / News / Meralco urged to convert ₱19 million fine to subsidize, refund consumers

Meralco urged to convert ₱19 million fine to subsidize, refund consumers

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Metro Manila (CNN Philippines, September 1) — Lawmakers have raised the possibility of converting the ₱19-million “bill shock” fine imposed against the Manila Electric Company to a subsidy or refund for its consumers amid the crisis.

During the hearing of the Senate Committee on Energy joint with the Committee on Public Services on Tuesday, Senator Risa Hontiveros asked Meralco about the possibility of rechanneling its hefty penalty to cushion the burden of its customers.

Meralco Utility Economics Head Larry Fernandez said they still have yet to look into this recommendation.

“Meralco has been suspending the implementation of the minimum billing demand for charges…because of the pandemic,” Fernandez told the panel.

“Since March this year, the amount equivalent to the suspension of distribution charges is equivalent to ₱ 2.7 billion already. On top of this, Meralco has been very aware on the need to look at the level of generation charges imposed on customers,” he added.

Last week, the Energy Regulatory Commission ordered Meralco to pay ₱19 million for violating the government’s advisories by not informing its consumers that their electricity bills were simply “estimated” during the lockdown, when the agency was restricted from reading meters in households.

ERC lawyer Chiara Blanca said it is up to the government to decide how the administrative fine can be utilized once reverted to the National Treasury.

“Since this is a fine, yung babayaran ni Meralco ay nirerevert din sa National Treasury. Ang pag-allocate ng pera ay nakasalalay sa government kung paano ito nadidispense,” she said.

[Translation: Since this is a fine, Meralco’s fine will be reverted to the National Treasury. It is up to the government to decide where and how it will dispense the allocated money.]

Meralco, the country’s biggest power utility, faced complaints from consumers after failing to explain the surge in charges from March to May. It previously said that billings were based on average consumption from December to February since meter reading activities could not immediately be done due to the community quarantine regulations.

Meralco earlier said it will file necessary pleadings following the ERC order.

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