Dimalanta

Suspended Energy Regulatory Commission (ERC) chair Monalisa Dimalanta said at least 23 electric cooperatives (ECs) may suffer from higher power rates as they are highly exposed to the Wholesale Electricity Spot Market (WESM).

This as the ERC will need a functioning chair to decide on power supply agreements (PSAs), Dimalanta said in a forum hosted by Kamuning Bakery Cafe in Quezon City yesterday.

Most of these ECs are in the Visayas and are sourcing more than 50 percent of their power needs from the WESM where rates are not fixed compared to power sourced via PSAs, Dimalanta said.

She said the grounds for her suspension are moot as the ERC has decided on the complaint against her which led to her suspension.

Dimalanta was suspended for six months by the Office of the Ombudsman for alleged grave misconduct, grave abuse of authority and conduct prejudicial to public service, following a complaint filed by consumer group Nasecore regarding delays in the rate reset of Manila Electric Co. (Meralco).

Dimalanta said the ERC did not commit inaction as it dismissed the rate application and “consider(ed) the fifth regulatory period (RP) as a lapsed period.” This means Meralco’s distribution rate will remain unchanged until end-June 2026.

Dimalanta said the ERC made its decision on Aug. 21, 2024, which was before the Ombudsman’s order dated Aug. 27, 2024.

“On August 21, the Commission already voted, 3-2, and I was part of the two that dissented, along with Commissioner (Catherine) Maceda. Our dissent vote was that there needs to be a proper reset for the fifth regulatory period, which is the 2022 to 2026 period of Meralco,” Dimalanta said.

“My point was it is the job of the regulator to do the reset. There hasn’t been a reset in the last 10 years, so why should we let go of our job to reset for a period that is yet to lapse,” she added.

 Meralco said it is yet to receive a copy of the decision that allegedly stops any adjustments in the company’s distribution rate until end-June 2026.

“In compliance with the governing rules issued by the ERC in December 2021, Meralco’s application for the distribution rate reset, which sought an adjustment in our tariff from P1.35 per kilowatt hour (kWh) to P1.57 per kWh, was filed in March 2022. Based on ERC rules, which require that the rate application of distribution utilities must be based on forecast of their annual revenue requirements in the next four years, the 5th RP application of Meralco should have been decided by ERC before the start of the 5RP on July 1, 2022,” Meralco said in a separate statement.

Meralco said like other distribution utilities, the conduct of rate reset applications are necessary to implement projects and programs that will ensure fulfillment of its mandate to deliver stable and reliable service to customers.