SC asked to declare directive on Meralco bill deposit illegal

MANILA, Philippines — The Makabayan bloc on Tuesday challenged the legality of an Energy Regulatory Commission directive that allowed Meralco to collect bill deposits before the Supreme Court.

The petitioners said that the ERC committed grave abuse of discretion amounting to lack or excess in jurisdiction when it allowed power distributor Meralco to collect bill deposits from its customers. The bill deposits, with interest, amount to at least P29 billion, they said.

Bayan Muna chairman Neri Colmenares, a candidate for senator, led the filing of a petition for certioriari. Joining him in their plea are Bagong Alyansang Makabayan Secretary General Renato Reyes Jr. and Reps. Carlos Zarate (Bayan Muna party-list)), Ariel Casilao (Anakpawis party-list), Emmi De Jesus and Arlene Brosas (Gabriela party-list), Antonio Tinio and France Castro (Act Teachers party-list) and Sarah Elago (Kabataan party-list).

The ERC, in a November 2010 resolution, amended the definition of a bill deposit to mean “deposit required from consumers by distribution utilities of new and/or additional service and from disconnected consumers who were previously not subject to deposit shall be equivalent to the estimated billing for one month to guarantee payment of bills.”

Meralco, for its part, defines bill deposit as “amount required from all customers of all distribution utilities as a guarantee for payment of electric bills.”

But the petitioners argued that bill deposit is not defined under the Electric Power Industry Reform Act. “It does not fall under distribution wheeling charges, connection fees or retail rates allowed by EPIRA to be collected from consumers,” they said in a release.

“Such guarantee for payment of bills on its captive market has no basis or justification and is actually illegal since payment of bills is already certain under the ERC and Meralco’s policy and protocols in non-payment of monthly bills,” it added.

The petitioners asked the SC to strike down as illegal and void the ERC’s Magna Carta for Residential Electricity Consumers that allowed the collection of the bill deposit.

They also asked the tribunal to order the Commission on Audit to conduct an audit of the funds collected from consumers since the bill deposit was required and the interest it incurred.

Named as respondents are the ERC, represented by its chairperson Agnes Devanadera, Commission on Audit, represented by its chairperson Michael Aguinaldo, and Meralco represented by its president and CEO Oscar Reyes. — Kristine Joy Patag