MERALCOOVERPRICEUNJUST,SAYSGROUP

ConsumergroupPeopleOpposedtounWarrantedElectricityRates(POWER)calledontheEnergyRegulatory Commission (ERC) to proceed with an inadvertently leaked directive ordering the ManilaElectric Co. (Meralco) to refund P6.927 billion in over recoveries charged to its consumers from January2014toDecember2016.

DetailsofthedirectivewerepostedontheERCwebsitelastMay4butlatertakendown.ERCCommissioner Josefina Magpale-Asirit confirmed the existence of the directive but said the commissionenbanc hasyettofinalizetheordernextweek.

MeralcowantsthefigurereducedP5.847billion,saying itisentitledtoretainP1.08billioninpropertytaxpaymentsfromtheover recoveries.Meralcoalsowantstherefundtobedoneoveraperiod of36months.

"ERCshouldnotallowMeralco topassonitsrealpropertytaxes toitsconsumersnorshoulditbeallowedto keep enjoying the fruits of its overcharging. As a matter of justice, the full refund should be reflectedinnextbilling cycle,"saidPOWER.

The group said Meralco had already reaped the full benefit of overcharging P6.927 billion from itsconsumersinthelastthreeyears.

"Every second that Meralco is allowed to retain and benefit from that money is a stroke of injustice toeveryelectricityconsumerandthepublicatlarge.ERCshouldorderMeralcotoreturnthewholeamount immediately," thegroupstressed.

Thegrouplamented thatMeralco'soverchargingdidnotonlymeanhigher monthlybillsbuthigherprices of goods and services for the entire country, since most of the country's offices and factories are located intheMeralcofranchisearea.

POWERurgedtheERCto come upwithawaytodetermine suchover recoveriesimmediately.

"AllowingagiantlikeMeralco tooverchargeitshaplessconsumersforthree(3)yearsisborderingonthecriminal," theysaid.

QUESTIONS:

1. Whattypeofmonopoly isMeralco? Explainyouranswer.

1. Whatinefficienciesdoesthe over recoveryimposeonthemarket?

1. Asidefromthegovernmentdirective,whatcanbedonetoprevent Meralcofromovercharging?