Meralco may also lose franchise – Gatchalian

MANILA, Philippines – Manila Electric Co. (Meralco) could suffer the fate of ABS-CBN for its refusal to easily comply with orders from the Energy Regulatory Commission (ERC), Senator Sherwin Gatchalian said Sunday.

ABS-CBN’s decades-long dominance ended after the House committee on legislative franchises in July rejected its request for a new 25-year legislative franchise on the grounds that it violated the constitutional prohibition on foreign ownership of media outlets. communication, among other reasons.

The Lopez-owned media conglomerate hoped to obtain a new license to resume its business and continue to pay its 11,000 employees. On May 5, the day after her franchise expired, she was forced to shut down her radio and television operations.

Gatchalian, chairman of the Senate energy committee, warned that Congress could exercise its oversight role to revoke the Meralco franchise after he said he would appeal the P19 million fine that ERC had imposed on the company for failing to clearly explain to customers the increase in their monthly bills.

Meralco, the country’s largest power company, had billed customers based on average consumption from December to February because meter reading could not be performed in March and April due to improved community quarantine in Luzon that was targeting prevent the spread of the new coronavirus.

However, he did not clearly explain the increase in charges for May, prompting many irate customers to file complaints with the ERC.

“[Meralco] He should not appeal further because it is impossible that the penalty is only P19 million. They have to look at it as a whole, ”Gatchalian told the Inquirer by phone.

Meralco spokesman Joe Zaldarriaga said the company respected the senator’s statement.

“That is why we are studying ERC’s decision meticulously,” said Zaldarriaga, adding that in the next few days Meralco would take action for the good of its clients.

“In fact, we have also fully complied with the quota plan. In fact, we went beyond the period stipulated by the ERC that began only on March 16. We include invoices that are due from March 1 to 15 in the installment plan ordered by ERC, ”he said in a statement.

Actual penalty P300M Gatchalian praised ERC’s decision last week to penalize the power distributor, saying it could actually cost Meralco around P300 million, as the regulatory agency also ordered it to offer a “lifesaver” consumer discount, or those that use less than 100 kilowatts. hours per month.

He said the P1.90 per kilowatt-hour discount would benefit some 2.7 million consumers.

As of March, Meralco had 6.4 million residential accounts, or 92 percent of the total in its franchise area in Metro Manila and neighboring provinces. Commercial customers accounted for 530,864 (8 percent) connections and industrial customers, 10,580 (0.2 percent).

“I am satisfied with the swift resolution (of the ERC) to impose a fine … But the P19 million fine, for me, is just a drop in the bucket for Meralco,” Gatchalian said.

“I think the fine of almost P300 million is quite reasonable because its violation is non-compliance with the orders of the ERC,” said the senator.

“If they still resist, I will advise ERC to impose stronger fines and find other ways to penalize (Meralco),” he said in a separate radio interview.

No breakdown of charges

Gatchalian attacked Meralco and other energy distributors for failing to clearly explain to their clients the breakdown of monthly charges, such as the collection of the environmental fee and the allocation of power fees and a universal tax on all electricity consumers.

He said the recent decision by the House of Representatives to deny ABS-CBN’s application for a new franchise should be a lesson to all legislative licensees.

In fact, he said, any legislator could seek a review of the Meralco franchise as part of Congressional oversight authority even before the power distributor can request an extension.

“Based on our experience with ABS-CBN, sins of the past can come and haunt you. In other words, during the deliberations of its franchise, this type of violation may be the basis for the revocation or non-extension of the franchise (of Meralco), ”said Gatchalian.

“This could be a ‘bad record’ against (Meralco) … It could be an obstacle (to secure a new franchise),” he warned.

He added: “If the legislators believe that there is a serious violation, it is their discretion to propose the recommendation to extend, add more penalties or even revoke (the franchise) as severe punishment.”

During House hearings on the renewal of the ABS-CBN franchise, lawmakers allied with President Duterte revived the allegations against the Lopez-owned broadcast company, including its alleged illegal buyback of its assets following the fall of the strongman. Ferdinand Marcos after the Edsa People’s Power Revolution in 1986.

However, critics claimed that ABS-CBN’s failure to land a new franchise was due to Duterte’s earlier statement that it would block his application to run a television ad criticizing him during the 2016 presidential campaign.

The president also claimed that the network did not broadcast its paid ad in the final stretch of the electoral campaign.

ABS-CBN has laid off thousands of employees after it stopped its broadcast radio and television broadcasts.

–With a report by Ronnel V. Domingo

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