Senator Sherwin Gatchalian raised concerns over the Energy Regulatory Commission’s (ERC) decision to skip the fifth regulatory reset of Manila Electric Company’s (MERALCO) distribution rate, covering 2022-2026.
He warned that this move could result in higher electricity bills for consumers.
“As consumers, we are expressing our opposition to the ERC’s decision to forego the fifth regulatory reset of Meralco’s distribution rate. The rate must go through the resetting process,” Gatchalian said in a statement.
He argued that the rate reset is essential to ensure fair pricing, as it adjusts distribution rates based on inflation, operational expenses, and the Weighted Average Cost of Capital (WACC), which for MERALCO has remained at 14.97% since 2015.
Gatchalian added that it would be unfair for consumers if MERALCO maintains a 14% WACC for the next four years. He also questioned the numerous delays in regulatory resets, pointing out that the procedure has not been completed on time since 2001.
In his role as vice-chair of the Senate Committee on Energy, Gatchalian called on the ERC to expedite its review of power sector rates and conduct a study to resolve the regulatory backlog.
