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The National Association of Electricity Consumers for Reforms (NASECORE), led by our National President, Mr. Petronilo “Pete” L. Ilagan, today filed a Motion for Reconsideration before the Energy Regulatory Commission (ERC) to challenge its recent order directing MERALCO to stagger a P19.96 billion refund over 36 months.
The ERC’s decision prioritizes MERALCO’s financial convenience over the urgent needs of consumers. It fails to ensure equitable relief for all households and disregards the needs of consumers already struggling with soaring electricity bills and inflation. Every peso of this P19.96 billion belongs to the people. Delaying its return allows MERALCO to profit further by holding onto over-recovered funds.
A staggered refund dilutes its impact, as seen in past ERC rulings. It denies consumers immediate financial relief. A one-time cash refund is non-negotiable. It’s not only about returning over-recoveries—it’s about restoring trust.
Uniform Refund Rate Unjust to Consumers
The ERC’s order applies a flat refund rate of P0.2024/kWh for all residential customers. However, MERALCO’s tiered distribution rates mean higher-consuming households pay more per kWh but will receive the same refund rate as low-consumption users.
This is double discrimination. A household using 500 kWh monthly paid up to P2.92/kWh in distribution charges. A 150 kWh user paid only P1.80/kWh. Yet both get the same refund rate?
The ERC’s formula rewards MERALCO for overcharging and punishes families who use more electricity.
NASECORE demands refunds proportionate to the distribution rates each customer paid, calculated based on their consumption from July 2022 to December 2024.
ERC’s Regulatory Failure
The ERC has neglected to verify MERALCO’s financial filings, such as tax returns and audited statements, before approving the refund amount. How can the ERC order a P19.96 billion refund without checking if MERALCO underreported its over-recoveries? The lack of due diligence risks shortchanging consumers.
Additionally, the order lacks enforcement mechanisms or penalties to ensure MERALCO complies. Without safeguards, the energy giant could delay or reduce refunds—in which case, the ERC must hold them accountable.
NASECORE urges the ERC to:
– Replace the 36-month refund with a one-time cash disbursement
– Adjust refunds to reflect each customer’s actual distribution charges
– Require MERALCO to disclose exact refund amounts per customer
– Impose penalties for non-compliance to protect consumers
This motion is about fairness, transparency, and urgency. The ERC must correct this pro-MERALCO bias and put consumers first.