ERC fines Meralco over violations on ECQ directives

FILE: Meralco (López) Building along Ortigas Avenue, Pasig, Metro Manila. (Photo By Lainecedillo/Wikimedia Commons, CC BY-SA 3.0)

MANILA – The Energy Regulatory Commission (ERC) on Thursday said it will impose a PHP19-million fine on Manila Electric Co. (Meralco) for violating its directives during the enhanced community quarantine (ECQ).

In a statement, ERC cited these violations of Meralco include failure to clearly indicate that the bills were estimated, and failure to comply with the mandated installment payment arrangement.

The agency said Meralco has incurred a total of 190 days of violations.

ERC added that for any violation of provisions of the Electric Power Industry Reform Act, its implementing rules and regulations, and any other orders or directives of the Commission has a basic penalty of PHP100,000.

“Meralco’s neglect to provide accurate and timely information especially during this time of pandemic has created chaos and confusion to most of the electricity consuming public. The Commission issued the relevant advisories with the intention of alleviating the financial burden of the electricity consumers who were most adversely affected by the community quarantine measures implemented by the government,” ERC chairperson and chief executive officer Agnes Devanadera said.

On top of this, ERC directed Meralco to set to zero the distribution, supply, and metering (DSM) charges for those who consume 100-kilowatt hours and below per month for a one-month billing cycle.

This shall take effect in the next billing cycle upon Meralco’s receipt of the ERC decision.

“The said retail rate discount will provide temporary economic relief to more than two million lifeline consumers and their family members at least for a month,” ERC said.

The total discount to lifeline consumers will amount to more than PHP200 million. This should not be charged to non-lifeline customers, the Commission added.

Meralco said it has not yet received a copy of the order from ERC.

“We will study the Order and we will file the appropriate pleading after consultation with our lawyers,” Meralco’s head for regulatory management lawyer Jose Ronald Valles said.