WE commend the COA Special Audit Team for its Nov. 12, 2009 Audit Report (already submitted to the Energy Regulatory Commission or ERC), which found Meralco to have overcharged its consumers by P7.1 billion. We strongly believe the P7.1 billion is just the tip of the iceberg.
Meralco?s overcharging, we believe, has become habitual, if not a vice.
We only need to remember the Supreme Court and the ERC orders directing Meralco to refund P30.2 billion and P3.9 billion for overcharging consumers in 2003 and 2008, respectively.
Meralco?s immediate reaction, slamming the Nov. 12 report, can easily be seen as an attempt to cover up its overcharges, the refund of which the ERC must immediately order pursuant to its mandate to protect consumers.
We urge media and the consumers, in general, to nudge ERC to use its ?motu proprio? powers to audit the ?unaudited years? (2005, 2006, 2008 and 2009) to determine the reasonableness of the rate ERC approved for Meralco.
The determination of a just and reasonable rate, which is the sole mandate of the ERC, is a huge task involving pre- and post-audits. This audit is absolutely necessary if we should have a just and reasonable rate.
We hope the Nov. 12, 2009 COA Audit Report will open the eyes of the ERC and prompt it to accept the importance of a pre- and post-regulatory audit.
Further, it is hoped that any such audit would include an ocular inspection to determine the existence, condition and use of utility assets the costs of which are made part of the rate charged to the consumers. The ocular inspection should be done prior to the ERC?s acceptance of any rate increase application.
?PETE L. ILAGAN, president,
National Association of Electricity
Consumers for Reforms Inc.