A leader of the House of Representatives on Monday appealed to the Manila Electric Co. (Meralco) “to set an example for other distribution utilities, behave like a responsible corporate citizen,” and just pay the P19 million “bill shock” penalty earlier imposed by the Energy Regulatory Commission (ERC).
“The P19-million fine is really nothing much, considering Meralco’s robust earnings. The action of paying the fine is far more important, because it signifies readiness to comply,” Deputy Speaker and Surigao del Sur Rep. Johnny Pimentel said.
“In other countries—especially in the United States—private corporations tend to promptly pay regulatory fines or penalties without necessarily acknowledging any wrongdoing,” Pimentel said.
“Of course, there are also corporations in America that choose to pay fines right away just to avoid further scrutiny,” he said.
The ERC penalized Meralco for neglecting to clearly explain to consumers that their monthly bills during the COVID-19 quarantine period were merely estimated, owing to the power distributor’s inability to send out meter readers.
Meralco also failed to comply with a mandatory installment bill payment plan for consumers, the ERC said in an Aug. 20 decision made public only on Aug. 27.
“Up to now, households cannot understand why their Meralco bills – particularly for the April 18 to May 17 billing period – suddenly tripled at a time when energy prices collapsed across the board,” Pimentel said.
Prices in the Wholesale Electricity Spot Market (WESM) plummeted 59 percent in the first semester this year compared to the same period in 2019, as the COVID-19 pandemic destroyed demand and created an oversupply, Pimentel pointed out.
WESM is the country’s venue for the trading of electricity as a commodity.
