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Monday, February 3, 2025
25.9 C
Philippines
Monday, February 3, 2025

Distribution firms can ask consumers to pay deposits—SC

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THE Energy Regulatory Commission (ERC) can allow power utilities to require their consumers to pay deposits as security for their electric bills, according to the Supreme Court (SC).

The SC en banc made the ruling in a resolution denying a petition filed by the camp of Neri Colmenares challenging the ERC’s authority to allow distribution utilities, such as the Manila Electric Company (Meralco), to collect bill deposits from their consumers.

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The decision affirmed the ERC’s rate-fixing power to ensure the economic viability of electricity distributors.

Judicial review requires an actual and completed government action that adversely affects the petitioners, said SC.

It added that since the ERC’s Rules on Bill Deposits are still under development, there is no final act to challenge.

The Colmenares group filed the petition before the SC in 2019, arguing that the bill deposit requirement lacked adequate regulations.

The High Tribunal tossed out the plea for being premature.

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