Gatchalian Warns ERC Move Could Raise Meralco Rates, Burden Consumers

(MENAFN- EIN Presswire) PHILIPPINES, October 20 - Press Release
October 19, 2024

Gatchalian warns ERC move could raise Meralco rates, burden consumers

Senator Win Gatchalian flagged a decision made by the energy Regulatory Commission (ERC) to forgo the fifth regulatory reset of Meralco's distribution rate, covering the period 2022-2026, warning that the move could lead to higher electricity bills for consumers.

Gatchalian expressed concern that without the rate reset, Meralco's charges may not reflect the current economic conditions, potentially resulting in increased costs for households and businesses.

"As consumers, we are expressing our opposition to the ERC's decision to forego the fifth regulatory reset of Meralco's distribution rate. The rate must go through the resetting process," Gatchalian told ERC officials at a recent Senate hearing on the proposed 2025 budget of the Department of Energy and its attached agencies, including the ERC.

A rate reset is a periodic process conducted by the ERC to review and adjust distribution rates charged by utilities like Meralco. It ensures rates reflect the actual costs of delivering electricity, considering factors such as inflation, operational expenses, and the Weighted Average Cost of Capital (WACC). Meralco's current WACC is 14.97%, and it has not been updated since 2015.

"Ginawa natin ito sa National Grid Corporation of the Philippines, so we must apply the same rules to Meralco. Given its market power and status as a natural monopoly in NCR and nearby areas, Meralco has to undergo a rate reset as well," Gatchalian said.

"That is not fair for consumers. Hindi puwedeng magmi-maintain ng 14 percent ang Meralco for the next four years. Historically ang reset ay puro extension. Wala naman on time na reset, hindi ba? Siguro noong 2001 lang pero after that, puro delayed na," he pointed out.

The vice-chair of the Senate Committee on Energy, Gatchalian urged the ERC to come up with a study that would enable the regulatory body to catch up with its review of rates of various stakeholders in the power sector.

"Why require a rate reset if the ERC isn't even conducting it? The regulator itself is not keeping up with the pace," said Gatchalian, who has filed a bill that would establish the ERC's charter and strengthen its authority to regulate energy stakeholders.

Gatchalian nagbabala sa hakbang ng ERC na maaaring magpataas sa singil ng Meralco

Nagbabala si Senador Win Gatchalian sa desisyon ng Energy Regulatory Commission (ERC) na hindi na ituloy ang ikalimang regulatory reset ng distribution rate ng Meralco, na sumasaklaw ng taong 2022 hanggang 2026. Ayon sa senador, ang hakbang ay maaaring humantong sa mas mataas na singil sa kuryente ng mga konsyumer.

Nababahala kasi si Gatchalian na kung walang pag-reset ng rate, maaaring hindi tumugma ang singil ng Meralco sa kasalukuyang kalagayang pang-ekonomiya, na posibleng magresulta sa mas mataas na gastos sa kuryente para sa mga kabahayan at negosyo.

"Bilang mga mamimili, tutol kami sa desisyon ng ERC na hwag nang isagawa ang ikalimang regulatory reset ng distribution rate ng Meralco. Kailangang dumaan sa resetting process ang rate ng Meralco," sabi ni Gatchalian sa mga opisyal ng ERC sa nakaraang pagdinig ng Senado sa panukalang 2025 budget ng Department of Energy at mga attached agencies nito, kasama na ang ERC.

Ang rate reset ay isang proseso na isinasagawa ng ERC upang suriin at i-adjust ang distribution rate na sinisingil ng mga utility companies tulad ng Meralco. Tinitiyak nito na ang mga singil ay naaayon sa aktwal na gastos ng paghahatid ng kuryente, isinasaalang-alang ang inflation, mga gastos sa operasyon, at ang Weighted Average Cost of Capital (WACC). Ang kasalukuyang WACC ng Meralco ay 14.97%, at hindi na ito na-update mula pa noong 2015.

"Ginawa natin ito sa National Grid Corporation of the Philippines, at kailangan nating ipatupad din sa Meralco. Dahil sa tinatawag na market power nito at katayuan bilang natural na monopolyo sa NCR at mga kalapit na lugar, kailangang sumailalim din ang Meralco sa rate reset," sabi ni Gatchalian.

"Hindi ito makatarungan sa mga konsyumer. Hindi pwedeng basta magpatuloy ang 14 porsyento na rate reset ng Meralco sa susunod na apat na taon kung hindi naman talaga ito ang aktwal na rate. Sa loob ng mahabang panahon, noong 2001 lang siguro on-time ang rate reset, pero noong mga sumunod na taon ay puro delay na," pagdidiin niya.

Bilang vice-chair ng Senate Committee on Energy, hinimok ni Gatchalian ang ERC na gumawa ng isang pag-aaral na magbibigay-daan sa regulatory body na makahabol sa pagsusuri nito sa mga rate ng iba't ibang stakeholder sa sektor ng kuryente.

"Bakit kailangan gawing requirement ang rate reset kung hindi naman ito ipinapatupad ng ERC? Kung 'yung mismong regulator nga hindi makahabol," sabi ni Gatchalian. Matatandaang naghain noon si Gatchalian ng panukalang batas na magtatatag sa charter ng ERC at magpapalakas sa awtoridad nito na i-regulate ang mga energy stakeholder.

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