NASECORE calls on ERC to recall MERALCO refund, demands audit of P19.9B over recoveries
The National Association of Electricity Consumers for Reforms, Inc. (NASECORE), led by former Undersecretary of the Department of Energy Petronilo “Pete” Ilagan, calls on the Energy Regulatory Commission (ERC) to immediately reverse its 5 March 2025 Order allowing MERALCO to stagger the refund of P19.9 billion in over-recoveries over 36 months. The decision is a betrayal of consumer rights and a violation of the Electric Power Industry Reform Act (EPIRA).
The ERC has failed to uphold their mandate under EPIRA. The Commission has consistently been unable to ensure transparency, prevent market abuse, and protect consumer welfare. The Order, which grants MERALCO undue financial leverage by prolonging the refund period, deprives consumers of immediate relief. This raises alarming concerns about regulatory capture.
Firstly, the ERC approved the staggered refund without auditing MERALCO’s financial records to verify if the P19.9 billion remains intact or was misused. This neglect violates EPIRA’s provisions on accountability.
Secondly, by permitting MERALCO to retain consumer funds for 36 months, the ERC enables potential misuse. This includes unauthorized operational expenses or interest gains that rightfully belong to consumers.
Lastly, MERALCO’s prolonged retention of over-recoveries constitute possible Estafa under Article 315 of the Revised Penal Code, as well as violations of the Anti-Graft Act (RA 3019), where the ERC is directly complicit.
Consumers are entitled to a full one-time refund with interest, not a drawn-out scheme that favors MERALCO’s liquidity over public restitution.
NASECORE demands immediate ERC action to recall the 5 MARCH 2025 Order and mandate a lump-sum refund of P19.9 billion with interest. We also demand a full audit of MERALCO’s finances to trace over-recoveries and determne accountability. Sanctions must be imposed if audit results confirm fund misuse.
Failure by the ERC to act within 10 days would compel NASECORE to pursue legal remedies, including criminal complaints against involved parties.
“The ERC’s decision prioritizes MERALCO’s profits over the welfare of millions of FIlipinos burdened by unjust electricity rates. We will not stand idle while consumers are robbed of theirrightful refunds,” stated NASECORE president Pete Ilagan.