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  • Refund, exemption from
    system-loss bill pushed
    By Fernan Marasigan
    Reporter

    A MILITANT legislator advised the Manila Electric Co. (Meralco) on Thursday to immediately start refunding consumers “for its crime of passing the cost of its own electricity usage and inefficiencies to the public” if it wants to stop what he described as “gung-ho bashing” of the company.

                    At the same time, Party-list Rep. Teodoro Casiño of Bayan Muna called on the Energy Regulatory Commission (ERC) to act motu proprio to order Meralco and other distribution utilities to stop such unjust charges and refund their consumers.

                    Casiño is also blaming the Arroyo administration for the high electricity rates across the country, saying no amount of Meralco-bashing could hide its own culpability.

                    “For all its gung-ho bashing of Meralco, President Arroyo and her minions have the greater accountability for generating and keeping anti-people laws in place that allow Meralco and other power distributors to pass on onerous charges on consumers. Meralco must refund its consumers and the government must account for allowing these crimes to happen at the expense of the citizenry,” Casiño said.

                    At the same time, Sen. Loren Legarda filed Senate Bill 2289 that, once enacted into law, would stop the ERC-approved practice of passing on to consumers the so-called system  losses from pilferage and inefficiency  incurred by power companies.

                    “This bill seeks to introduce amendments to Republic Act 7832 (also known as the Anti-Electricity and Electrical Transmission Lines/Materials Pilferage Act of 1994) to stop the absurdity of innocent consumers being made to pay for the criminal activities of some consumers and the inefficiencies of the utilities they are forced to deal with,” Legarda said.

       Legarda argued that such losses should be shouldered by power retailers because they are part of the risk of doing business, and because the retailers should be fully responsible in minimizing pilferage and losses from inefficiency.

       “If they cannot pass systems losses to consumers, electric companies will be motivated to go after pilferers and to improve their systems to minimize naturally occurring losses,” she added.

       She also proposed the expansion of RA 7832’s coverage to include distribution lines and materials from those protected by the law against pilferage. Legarda’s bill likewise seeks to increase the fine for pilferage from P50,000 to a range of P100,000 to P500,000.

                    She noted that systems loss accounts for at least 8 percent of the bill of an average consumer or about 58 centavos per kilowatt hour (kWh). From 2003 to 2007, Meralco customers paid P84.6 billion in systems losses based on the 70.55 centavos systems loss charge per kWh.

                    At the Joint Congressional Power Commission (Powercom) hearing on Monday, Meralco executives revealed that the company was charging its customers 72 million kiloWatt-hours of electricity it was using at P5.70 per kWh, or a total of P427.5 million per year.

                    “This is the height of corporate greed and government collusion. Meralco has already been castigated twice by the Supreme Court for overcharging us. It can be recalled that in 2003, the SC ordered Meralco to refund its customers P30 billion after it passed on to its customers its income tax payments from 1994 to 2002. This time, the government, through the ERC should stop defending Meralco for its immoral conduct charging its consumers for systems losses and its own electricity consumption,” Casiño said.

                    He also announced that he and his fellow legislators in the House of Representatives will work on two concrete measures to help in bringing down electricity rates.

                    Ferdinand Gaite, national president of Confederation for Unity, Recognition and Advancement of Government Employees or Courage, said GSIS presideent Winston Garcia has no right to put their pension funds at stake in his recently role as Malacanang’s attack dog against Meralco.

                    Garcia meanwhile assailed former Commission on Elections Chairman Christian Monsod’s “lame defense” of Meralco’s reported charging of its customers a whopping  P13 billion for “ghost power deliveries.”

                    Garcia said Monsod is insulting the intelligence of Filipinos by peddling to them the story that Meralco made a “surreptitious” overpayment to First Gas to the tune of P13 billion for gas that had been stored for future use in generating electricity. With B. Fernandez and Z. Solmerin

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