In yet another deft maneuver, the power firm managed to pull a fast one when it convinced the Energy Regulatory Commission (ERC) earlier this year to refund the P13.8-B which it over collected from customers through the years.
IN AN IDEAL world, a big company that has a conscience and knows its corporate social responsibility would have no trouble giving back to the clients the money that it either knowingly or unknowingly over collected from them.
Not your ideal firm
But we live in an imperfect world and unfortunately, Meralco is not your ideal firm that knows its limits and understands the plight of its hapless subscribers who have been reeling from the effects of one of the worst contagions to ever hit the planet.
Yes, we are talking here of Meralco which for the longest time has been bleeding its customers dry through its various “over collection and over charging schemes”, and whose apparent only purpose for existence is to earn profits and make its investors laughing their way to the banks.
Foreign group
The story going around town for the longest time is that Meralco is actually controlled by a foreign capital group.
It is common knowledge that the MVP group of Manny Pangilinan that controls Meralco is perceived to represent foreign investors in the group’s investments in the Philippines and other countries.
Deft maneuver
In yet another deft maneuver, the power firm managed to pull a fast one when it convinced the Energy Regulatory Commission (ERC) earlier this year to refund the P13.8-B which it over collected from customers through the years.
Also, ERC approved a forgive and forget clause in giving a nod to the P13.8 Billion refund, meaning any and other claims relative to this issue is forgiven and written off.
Experts, however, estimate that total over collection by Meralco has already run to hundreds of billions of pesos.
Daylight robbery
To the uninitiated, it might appear that the power firm was doing its customers a huge favor by returning the money that it overcollected from them.
But to consumer protection advocate Butch Junia, who knows how the company operates, returning the P13.8-B was not an act of goodwill from the firm’s end, but could actually be likened to broad daylight robbery.
If we are to believe Junia who has been crusading for the longest time to protect the interests of subscribers from the wiles and machinations of various power firms, then the above amount was just a drop in the bucket of what Meralco actually pocketed due to its billing violations.
P226-B over collections
“Sabi nga ng mga inglisero, that’s a big ask sobra-sobrang napakaliit noong P13.8-B na kapalit doon sa tatablahin ng mga nasingil nila…. na sa kuwenta namin ay aabot sa P226-B since 2016 hanggang November 2020 pa lang, paano pa iyong ibang mga taon” Junia said in the online program Talakayan.
To recall, the ERC on February 19, granted the request of Meralco to refund at least P13.9 billion to its customers that will be paid in the span of 24 months.
The ERC issued the order in response to Meralco's application to confirm its actual weighted average tariff (AWAT) as against the ERC-approved interim average rate (IAR) to determine if there are any over or under recoveries.
24-month period
The amount was equivalent to P0.1528 per kilowatt-hour, over a 24-month period reflecting the calculation of the actual weighted average tariff compared to the previously approved average rate in 2015.
Meralco said in a petition it computed AWAT at P1.4414 per kWh during the lapsed period, based on the actual revenues and kWh sales.
The actual revenues came from distribution, supply and metering charges of Meralco.
Taken for a ride
But Junia would have none of the computations offered by Meralco and the subsequent approval given by ERC, noting that the consumers were once again at the shorter end of the stick after being taken for a ride.
“Ang tawag dito ay para tayong natsubibo, pinasakay tayo diyan. Kasi mula sa 2011-2015 ang nasingil sa atin ng Meralco ay P 226-B sa loob ng third regulatory period, hindi pa kasama diyan ang 4th regulatory period,” he said.
“Ayaw pag-usapan ng Meralco tungkol dito sa bagay-bagay na ito sa refund, hindi pa nga natin nakuwenta ang nasingil nila sa 4th regulatory period na nagsimula noong July 1, 2015 hanggang June 30 2019,” he explained.
P430-B total
Junia noted that by his reckoning, the total amount that Meralco had already over collected including the fifth regulatory period could amount to a total of P 430 -B more or less.
He noted that the P13.8 –B hardly made a dent on the firm’s earnings especially since it will be paid on staggered basis over a 24-month period.
“So, kung P 500-B more or less ang sobrang nasingil dapat mag-accounting ang Meralco kung saan napunta ang pera na iyan. Kaya nga iyong P13.8-B ay mismis lang,” he stressed.
Motion for intervention
This, as Junia said that he will press for Meralco declare the actual and true amount that it over collected from its almost seven million subscribers, through a motion of intervention that he filed before the ERC.
“Dito sa aking intervention dito sa rate refund order na ito yung tawag nila ay AWAT (Actual Weighted Average Tariff) kuno na ginawa nilang basehan…. Yung computation may isang item na gusto kong habulin sa audit review and verification na hinihingi natin sa mga nagdaan na nasingil ng Meralco,” he said.
P3-B for collection supplier
He also questioned why despite the P3-B that the power firm has been paying to its collection supplier to ensure the accuracy of billings, they were still committing over collections amounting to tens of billions of pesos yearly.
“Saan napunta yung P3-B? Magkano doon ang sa computer provider or system provider? Sino ang system provider na iyon? Paano naging ganoon kapalpak ang billing system natin,” he asked.
“Kung ganun kapalpak ang biling system anong penalty sa system provider na yun? Ano ang kanyang pananagutan sa mga nagdo-double bill na yan? Nagbayad ang tao hindi nagre-reflect, pangalawa, kung ang P3-B na iyan ay papano ginamit bakit ilan-ilan lang ang mga customer service center ng Meralco bakit iilan lang ang opisina,” he continued.
Long fight
As it is, Junia and his fellow consumer advocates have a long fight ahead of them.
We know that Meralco being a giant firm that it is will not just take this fight sitting down.
But we believe in Junia’s advocacy and the millions of people who are being robbed in broad daylight by these white collar thieves will surely be supporting him.