BY MYLA IGLESIAS
THE Department of Trade and Industry has
asked the Energy Regulatory Commission to order Manila Electric
Co (Meralco) to refund the system loss that it has been passing
on to its customers.
In a petition, DTI-Bureau of Trade Regulation
& Consumer Protection said Meralco should not pass its pilferage
losses to consumers since it was due to the distribution firm's
"inefficiency to safeguard its franchise from pilferage."
"In allowing Meralco to continue passing on
the pilferage losses incurred within its own system, best
efforts by distribution utility to combat pilferers would become
illusory," it said.
The petition said under the Distribution Code
of R.A 9136 or the Electric Power Industry Reform Act (Epira),
system loss is classified into three categories namely technical
loss, non-technical loss and administrative loss.
The DTI said the law covering systems loss
failed to set a cap on the recoverable rate; thus the consumers
of Meralco are entitled to refund and Meralco must stop billing
system losses to all its consumers.
DTI said the ERC should also order Meralco to
stop collecting the lifeline subsidy but rather increase the
discount to marginalized users or expand the coverage of the
lifeline subsidy.
The ERC approved a lifeline subsidy of 50
percent to customers who consume 50 kilowatt per hour (kWh), 35
percent to those who consume 51 to 70 kWh and 20 percent to
those who consume 71 to 100 kWh per month.
DTI proposed to increase the discount to 60
percent for those who consume 50 kWh, 40 percent for those who
consume 51 to 70 kWh and 30 percent for those who consume 71 to
100 kWh.
Under the present lifeline subsidy scheme,
residential customers consuming 50 kWh enjoy 50 percent
discount, 51 to 70 kWh get 35 percent and 71 to 100 kWh enjoy 20
percent.
DTI also proposed to expand the coverage to
electricity users with monthly coverage of up to 150 kWh per
month.
DTI also suggested that Meralco buy more from
the wholesale electricity spot market (WESM) during off-peak
hours when prices are cheaper.
DTI said Meralco can buy cheaper power from WESM without
going against the EPIRA because the law did not limit its
purchases from the WESM to just 10 percent of its power needs.
