The National Association of Electricity Consumers for Reforms (NASECORE) formally urges the Energy Regulatory Commission (ERC) to implement a full, independent audit by the Commission on Audit (COA) of Manila Electric Company’s (MERALCO) financial records covering 2005-2024. This demand is tied to refund orders worth an estimated ₱48 billion issued under ERC Cases No. 2020-043RC and 2015-112RC, which NASECORE claims were implemented without verification.
NASECORE President and former Department of Energy Undersecretary Petronilo “Pete” Ilagan asserts that the ERC’s failure to audit MERALCO violates binding Supreme Court rulings (MERALCO v. Lualhati, G.R. Nos. 166769 & 166818, 2006; G.R. No. 226443, January 2025). These decisions mandate independent audits as a precondition for lawful rate-setting and refunds. Ilagan highlighted that previous COA audits in 2004 and 2007 uncovered billions in over-recoveries, but no audit has occurred since, despite massive refund orders.
NASECORE calls on the ERC to:
1. Formally request COA to audit MERALCO’s books, rate base, asset valuations, and cost allocations.
2. Coordinate with COA on a transparent audit framework.
3. Suspend all pending MERALCO rate applications until the audit is complete.
4. Require MERALCO to submit all documentation to COA.
The ERC, in a May 27, 2025 response signed by Director III Atty. Maria Corazon C. Gines, acknowledged receipt of NASECORE’s request and endorsed it to the Regulatory Operations Service (ROS) for “evaluation and appropriate action.” The ERC committed to updating NASECORE on its actions.
NASECORE’s appeal reiterates our position that the ERC cannot fulfill its duty to protect consumers without independent verification of MERALCO’s financial data.