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    PreFinal Activity (Monopoloy)

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    Thirdy Suarez
    A consumer group called POWER called on the Energy Regulatory Commission (ERC) to proceed with an order directing Meralco to refund P6.927 billion in overcharges to consumers from 2014 to 2016. Details of the directive were leaked but later removed from the ERC website. Meralco wants to reduce the amount to P5.847 billion and retain P1.08 billion in property taxes, and wants refunds over 36 months. However, POWER argues Meralco should not pass property taxes to consumers or keep profits from overcharging, and the full amount should be refunded immediately in the next billing cycle.

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    PreFinal Activity (Monopoloy)

    Uploaded by

    Thirdy Suarez
    121 views1 page
    A consumer group called POWER called on the Energy Regulatory Commission (ERC) to proceed with an order directing Meralco to refund P6.927 billion in overcharges to consumers from 2014 to 2016. Details of the directive were leaked but later removed from the ERC website. Meralco wants to reduce the amount to P5.847 billion and retain P1.08 billion in property taxes, and wants refunds over 36 months. However, POWER argues Meralco should not pass property taxes to consumers or keep profits from overcharging, and the full amount should be refunded immediately in the next billing cycle.

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    A consumer group called POWER called on the Energy Regulatory Commission (ERC) to proceed with an order directing Meralco to refund P6.927 billion in overcharges to consumers from 2014 to 2016. Details of the directive were leaked but later removed from the ERC website. Meralco wants to reduce the amount to P5.847 billion and retain P1.08 billion in property taxes, and wants refunds over 36 months. However, POWER argues Meralco should not pass property taxes to consumers or keep profits from overcharging, and the full amount should be refunded immediately in the next billing cycle.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    121 views1 page

    PreFinal Activity (Monopoloy)

    Uploaded by

    Thirdy Suarez
    A consumer group called POWER called on the Energy Regulatory Commission (ERC) to proceed with an order directing Meralco to refund P6.927 billion in overcharges to consumers from 2014 to 2016. Details of the directive were leaked but later removed from the ERC website. Meralco wants to reduce the amount to P5.847 billion and retain P1.08 billion in property taxes, and wants refunds over 36 months. However, POWER argues Meralco should not pass property taxes to consumers or keep profits from overcharging, and the full amount should be refunded immediately in the next billing cycle.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    BM1704

    MERALCO OVERPRICE UNJUST, SAYS GROUP

    Consumer group People Opposed to unWarranted Electricity Rates (POWER) called on the Energy
    Regulatory Commission (ERC) to proceed with an inadvertently leaked directive ordering the Manila
    Electric Co. (Meralco) to refund P6.927 billion in overrecoveries charged to its consumers from January
    2014 to December 2016.

    Details of the directive were posted on the ERC website last May 4 but later taken down. ERC
    Commissioner Josefina Magpale-Asirit confirmed the existence of the directive but said the commission
    en banc has yet to finalize the order next week.

    Meralco wants the figure reduced P5.847 billion, saying it is entitled to retain P1.08 billion in property tax
    payments from the overrecoveries. Meralco also wants the refund to be done over a period of 36 months.

    “ERC should not allow Meralco to pass on its real property taxes to its consumers nor should it be allowed
    to keep enjoying the fruits of its overcharging. As a matter of justice, the full refund should be reflected
    in next billing cycle,” said POWER.

    The group said Meralco had already reaped the full benefit of overcharging P6.927 billion from its
    consumers in the last three years.

    “Every second that Meralco is allowed to retain and benefit from that money is a stroke of injustice to
    every electricity consumer and the public at large. ERC should order Meralco to return the whole amount
    immediately,” the group stressed.

    The group lamented that Meralco’s overcharging did not only mean higher monthly bills but higher prices
    of goods and services for the entire country, since most of the country’s offices and factories are located
    in the Meralco franchise area.

    POWER urged the ERC to come up with a way to determine such overrecoveries immediately.

    “Allowing a giant like Meralco to overcharge its hapless consumers for three (3) years is bordering on the
    criminal,” they said.

    REFERENCE:
    Araneta, S. (2017, May 13). Meralco overprice unjust, says group. Retrieved from Manila Standard
    Website: http://thestandard.com.ph/mobile/article/236505

    Questions: (3 items x 10 points)

    1. What type of monopoly is Meralco? Explain your answer.

    2. What inefficiencies does the over recovery impose on the market?

    3. Aside from the government directive, what can be done to prevent Meralco from overcharging?

    09 Handout 2 *Property of STI


    Page 1 of 1

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