The ERC has shown a lack of independent audits and transparency. It has approved refunds without verifying MERALCO’s over-recoveries through independent audits. This raises critical questions about the accuracy of the refunds. The absence of a public Refund Report further highlights their regulatory failure, as it leaves consumers unaware of their refund entitlements.
The delayed and prolonged refunds further deprive consumers of urgently needed funds. MERALCO was permitted to stagger refunds over extended periods instead of issuing lump-sum repayments. This financial arrangement benefits MERALCO at the consumers’ expense. Specific refund orders include:
ERC Case No. 2020-043RC: P13.89 billion (24 months), P4.84 billion (12 months), and P21.77 billion (12 months).
ERC Case No. 2015-112RC: P7.76 billion (12 months).
This demonstrates MERALCO’s unjust enrichment at the consumers’ expense. Low-income households, in particular, bear the brunt of the withheld refunds. For instance, a residential consumer paying P1,460/month in distribution charges over a decade could have overpaid significantly, yet the ERC has not ensured full restitution with interest.
NASECORE urges the ERC to publicly acknowledge its failure to audit MERALCO’s refund process. We also demand an independent audit to verify refund amounts and ensure full reimbursement – including accrued interest. The ERC must require MERALCO to submit customer-level refund reports, detailing over-collections, refunds issued, and pending balances. Refund policies must also be reformed to mandate transparency, and to include itemized billing statements showing refund timelines and amounts.
“The ERC’s duty is to protect consumers, not enable utilities to profit from regulatory gaps,” said NASECORE President Pete Ilagan. “These failures demand urgent correction to restore faith in the Commission’s mandate. Consumers deserve accountability – not excuses.”
The ERC is urged to respond promptly to these demands, ensuring justice for millions of MERALCO customers.