Manila Electric Company (Meralco) firmly denied recent allegations of overcharging, emphasizing its strict compliance with the Energy Regulatory Commission (ERC) regulations.
In a statement, the company reiterated that all rates and charges it collects are subject to ERC approval, ensuring fairness and cost efficiency for consumers.
Meralco clarified that it does not have the authority to set its rates unilaterally, as the ERC determines these through public hearings and detailed assessments. Additionally, periodic regulatory reviews may result in adjustments such as refunds or additional collections.
In response to the overcharging allegations raised by Senator Risa Hontiveros, Meralco described these claims as baseless and misleading. The company explained that its Weighted Average Cost of Capital (WACC), set by the ERC in 2011, was the lowest among distribution utilities at the time. Furthermore, the WACC’s effective rate of 10.5%, net of tax, was well below the 12% return endorsed by the Supreme Court in multiple cases.
Meralco also noted that after June 30, 2015, the ERC did not conduct a rate reset for distribution utilities, instead finalizing its current distribution rate of ₱1.3522 per kilowatt-hour in 2022. This rate, applicable for the period July 2015 to June 2022, resulted in a ₱48-billion refund to customers, which was promptly implemented from 2021 to 2023.
The company strongly refuted accusations of asset overvaluation and double charging, citing ERC findings that excluded inflation adjustments. Meralco attributed these false claims to dissenting opinions in ERC decisions and statements by a retired ERC official.
Meralco assures the public of its unwavering adherence to rules and its commitment to delivering stable, reliable, and affordable electricity in support of national development. The company continues to prioritize transparency and public accountability.
