ERC criticized over power rate hike

MANILA, Philippines – Party-list Trade Union Congress of the Philippines (TUCP), the country’s largest worker’s sectoral party in the Philippines, has criticized the Energy Regulatory Commission (ERC) for recently allowing Meralco to impose a rate increase of 26.90 centavos per kilowatt-hour which it said will add to the burdens of consumers in Metro Manila.

Meralco’s newest rate hike was based on the so-called “performance-based rate setting” that was approved by ERC.

“The so-called performance-based regulation scheme just gave Meralco more freedom to hike their rates with impunity. Under the old ‘return-on-rate base’ methodology, Meralco’s returns were limited to 12 percent. But now, it is ‘sky’s the limit.’ Because of the impotence of ERC, Meralco will bleed the consumers to death,” TUCP Rep. Raymond Mendoza said.

“The ERC has failed the consuming public. It is unable to fulfill its mandate under the law, and because of that, the consumers continue to suffer from increasing costs of electricity,” Mendoza said. -(The Philippine Star)