Friday, May 23, 2008 Group backs gov't move to probe Meralco
A POWER consumers group expressed its support to the investigation being conducted by the government into the alleged overpricing and cost padding charges against the Manila Electric Company (Meralco).
Raul Segovia, convener of the Fair Trade Alliance (FTA), said the inquiry is very timely especially now that power rates in the country are soaring up.
But Segovia stressed that aside from Meralco, the government should also investigate other areas of the power sector such as the atrocious sweetheart contracts between the National Power Corporation (Napocor) and independent power producers (IPPs).
"The government should not limit its investigation to Meralco alone. As it is, more than half of the cost of electricity is due to Napocor's purchase agreement with the IPPs, a non-transparent agreement requiring Napocor to purchase all the produce of the IPPs, whether needed or not, at guaranteed prices," he said.
President Gloria Macapagal-Arroyo has called on Meralco to lower power rates to appease foreign business groups, which have complained of high power costs, and to ease the burden on the poor who are saddled with rising food and oil prices.
"The government should also look into the Shell-Malampaya production sharing arrangement and into the privatization program for the power sector," Segovia added. "Is privatization the solution to the corruption in the power sector, or is it not the evil cause of a dysfunctional power sector in the country?" he asked.
FTA is a broad coalition of formal and informal labor, industry, agricultural, non-governmental organizations, and youth pushing for trade and economic reforms.
In a related development, Meralco clarified that the bill deposits of customers which Senator Juan Ponce Enrile is asking the power firm to refund is not an issue.
"The charging of bill deposit is to guarantee payment of bills, as stated in Chapter III, Article 28 of the Magna Carta. Under the code, a customer is obligated to pay a bill deposit, which is equivalent to an estimated one-month bill, as opposed to the two months erroneously reported," said Meralco vice president for corporate communication Elpi Cuna Jr.
The Magna Carta, Cuna said, "also provides that customers" bill deposits need to be updated annually based on the customer's previous 12-month actual average monthly billings. Meralco, however, did not immediately implement this provision so as not to burden its customers."
As regards the refund of the bill deposit, Cuna said: "Customers can avail of their bill deposits and the corresponding interest when they terminate their contract with Meralco."
The meter deposit will also be refunded to customers. The refund will include corresponding interest.
Cuna also said that at present, customers are exempted from paying the meter deposit, saying "Meralco has ceased charging the meter deposit since the Magna Carta for residential electricity consumers and non-residential customers were implemented."
Both the refund of the meter deposit and the exemption from the payment of it came about as a result of the Magna Carta for residential electricity consumers and non-residential customers.
"In refunding the meter deposit, we will await the final guidelines that the Energy Regulatory Commission (ERC) will set in so far as the mechanics are concerned," Cuna assured.
The ERC released a copy of the final draft on the rules governing the meter deposit refund. Meralco was given until May 23, 2008 to comment on the draft. The refund of the meter deposit will then commence once Meralco receives the final order from the ERC. (MSN/Sunnex)
