Loren asks ERC: Order refund of bill deposits too

Senator Loren Legarda urged today the Energy Regulatory Commission (ERC) to also issue the long-overdue guidelines on the bill deposits refund of electric consumers served by the country's 144 distribution utilities led by Meralco.

Legarda said that a prompt action of the ERC would remove suspicion that it is favoring Meralco and other distributors at the expense of consumers.

"The bill deposits of electric consumers, along with the interest they've earned through the years, should be returned to them immediately. Our people need that money to help tide them over these pressing times," she said.

The senator pointed out that the distributors have held and used the meter and bill deposits of their customers for so long now that any more delays in their refund is unacceptable.

For Meralco alone, the total meter and bill deposit receivable of customers was estimated at P21.4 billion.

She noted that the refund guidelines issued last week by the ERC covered only the meter refunds, plus interest of six percent for pre-1995 customers and 10 percent for post-1995 consumers.

Citing data provided by advocacy groups, Legarda said the bill deposits refund of consumers would dwarf their meter refund on a ratio of 1 is to 7.

Before the collection of meter deposits was stopped in 2004, Meralco collected P410 as meter deposit from each customer, representing half the market price of the equipment.

Along with the meter deposit, a separate bill deposit is collected covering the estimated two-month electric usage of the person applying for electric connection.

"Since the bill and meter deposits were collected at the same time, they should be refunded customers simultaneously," Legarda stressed.

On the rates of interest earned by the meter deposits, Legarda questioned why those who got electric service before 1995 are to get only six percent, while post-1995 customers are entitled to 10 percent.

"The ERC should not have made any distinction and should have pegged it at 10 percent. In fact, pre-1995 consumers may even demand higher interest on account of the distributors holding their money for a far longer time than those who got electric service in or after 1995," she said.

Legarda said public perception is that the ERC had sat on the guidelines, thereby unduly delaying the refunds, which consumers are entitled to after establishing a track record of regularly paying their bills.

She reminded the ERC of its mandate to lower the cost of power to consumers through the exercise of its regulatory powers.

"Rightly or wrongly, the ERC is perceived to be leaning towards influential players in the power sector industry. The ERC must remove this perception by ordering a refund."

The lady solon said the commission should likewise thoroughly examine the power charges of utilities and whether their pass-on charges are justifiable.