Meralco Allegedly Overcharged Consumers by ₱150 Billion – Here’s What You Need to Know
Senator Risa Hontiveros recently exposed Meralco’s alleged overcharging practices, amounting to around PHP 100 billion over several years. She claims the company used various methods to inflate electricity prices, such as: 1. Higher WACC (Weighted Average Cost of Capital): Consumers paid more than necessary, while Meralco reportedly gained significant profits. 2. Overstated Regulatory Asset Base (RAB): The value of assets like equipment and infrastructure was allegedly inflated, justifying higher charges. 3. Double Charging for Inflation: This has been happening since 2012, further burdening consumers.
Senator Hontiveros called on the Energy Regulatory Commission (ERC) to ensure that electricity rates are fair and devoid of unnecessary charges. She also emphasized that Meralco must refund the overcharged amounts before Congress considers renewing its legislative franchise, which is set to expire in 2028.
The senator plans to file a Senate resolution urging the Committee on Energy to investigate these overcollections and push for transparent accounting for the benefit of consumers.
Do you think Meralco should be held accountable? Should the government enforce stricter regulations to prevent overcharging? Share your thoughts below!
Senator Risa Hontiveros recently exposed Meralco’s alleged overcharging practices, amounting to around PHP 100 billion over several years. She claims the company used various methods to inflate electricity prices, such as: 1. Higher WACC (Weighted Average Cost of Capital): Consumers paid more than necessary, while Meralco reportedly gained significant profits. 2. Overstated Regulatory Asset Base (RAB): The value of assets like equipment and infrastructure was allegedly inflated, justifying higher charges. 3. Double Charging for Inflation: This has been happening since 2012, further burdening consumers.
Senator Hontiveros called on the Energy Regulatory Commission (ERC) to ensure that electricity rates are fair and devoid of unnecessary charges. She also emphasized that Meralco must refund the overcharged amounts before Congress considers renewing its legislative franchise, which is set to expire in 2028.
The senator plans to file a Senate resolution urging the Committee on Energy to investigate these overcollections and push for transparent accounting for the benefit of consumers.
Do you think Meralco should be held accountable? Should the government enforce stricter regulations to prevent overcharging? Share your thoughts below!