Workers ask Meralco: are we subsidizing PBB HOUSE electric consumption?

KMU demands Meralco to stop collecting
additional fees, give rebates to consumers now

Labor group Kilusang Mayo Uno today demanded power distributor Meralco to stop imposing additional power rates and instead refund around P7 billion overcharges that it collected from over 4 million Meralco customers in 2004 and 2007.

Since last month, Meralco had been imposing staggering increase in power rates after the Energy Regulatory Commission (ERC) approved its petition for increase. Generation, transmission, distribution charges have all increased, resulting to almost double electricity bills for lifeline customers and those consuming 101 kWh per month.

“Meralco is conveniently using the so-called power shortage problem to rake in more profits even while it still owes us billions in overcharging.” KMU chairman Elmer Labog said the Lopez-owned power distributor is ‘shortchanging and overcharging’ customers at the same time.

“Why will we pay more for electricity when we are also suffering from continued 1-3 hours rotating brownouts? Meralco should even give rebates for its customers,” Labog said.

In its 2009 audit report on the private power facility, the Commission on Audit noted that certain operating expenses of Meralco amounting to P3.48 billion and P2.92 billion for 2004 and 2007, respectively, were not considered recoverable from consumers as these were “not reasonable and necessary in the delivery of distribution services.”

COA auditors found that billions worth of property and equipment included in Meralco’s rate base were "not used or useful" in operations, including a P526.2-million creek and a P156-million parking lot. The utility also charged consumers for the pension costs and benefits for its employees amounting to P2.4 billion.

The labor group also lashed at the ERC for ‘sitting on the COA report.’ “ERC should have called for public hearings on the COA audit on Meralco but instead, it allowed Meralco to hike generation charges by 1.83 per kWh. ERC is supposed to be the ‘regulatory’ body for power rates but it is ensuring Meralco’s superprofits. Meralco can give rebates, but only if the ERC upholds the COA report.”

In 2009, Meralco recorded a 169% increase in consolidated income mainly due to increased electricity sales from residential and commercial customers.

Labog added, “We know that all of Meralco’s operations costs come from consumers. Our question now, is ABS-CBN’s top rating show PINOY BIG BROTHER’ Housepaying for its own electricity consumption or are Meralco consumers subsidizing the power usage of housemates?”

KMU and Anakpawis Partylist will continue to launch actions to push Meralco to refund customers. ###