PRESS RELEASE
The Supreme Court affirmed its 2019 Decision denying Meralco’s asset base valuation and pass-on costs relating to its operation of the Meralco museum, theater, wellness center, firing range, tennis court and other facilities not related to its main business of electricity distribution.
In a Resolution dated January 14, 2025, released only on February 24, upholding a suit filed by consumer watchdog National Association of Electricity Consumers for Reforms, Inc. (NASECORE), the Supreme Court stood by its decision voiding the adoption by the Energy Regulatory Commission of the current or replacement cost in the valuation of Manila Electric Company’s regulatory asset base and directed the agency to come up with a different valuation that would result in the delivery of electricity “in the least cost manner”.
The Court also directed the ERC to come up with “parameters” to determine which kind of business expenses of MERALCO should be passed on to the consumers. NASECORE through its president Pete Ilagan had questioned the passing on of the cost of pensions and income tax, amounting to billions of pesos a year, along with the expense of operating MERALCO’s theater, fitness center and other facilities, which the consumer group condemned as extravagance and should not be paid by the consumers.
The ERC has only 90 days to comply with these directives.