Palace: It’s up to Congress to probe new Meralco rate increase

Whether or not there is "irregularity" in the approval of the Manila Electric Company’s (Meralco) new rate increase by the Energy Regulatory Commission (ERC) is up to Congress to investigate," Presidential Spokesman Ignacio Bunye said yesterday.

In a radio interview, Bunye said that the ERC is an independent government agency that could make decisions on its own despite the fact that its chairman is an appointee of the President.

"The chairman of the ERC operates independently despite the fact that he is an appointee of the President. The executive department is not intervening in the ERC’s deliberations although the Department of Energy (DOE) is participating," Bunye said.

Bunye further explained that the DOE simply explains its position to the ERC, but in the end the decision is always in the hands of the ERC.

Meralco started implementing a rate increase of 8.76 centavos per kilowatt hour yesterday upon the approval by the ERC, prompting fears of possible irregularity in the decision.

Bunye, however, explained that as an independent body, the ERC will cease to be independent if subjected to investigation by the executive department. Maybe Congress could take a look at this," Bunye suggested.

Bunye stressed that the presumption of regularity among the decisions being made by the government agencies, such as the ERC, is always there "in the absence of very clear proof that there is an anomaly."

"We have the so-called presumption of regularity in the decisions of government agencies and in the absence of very clear proof that there is an anomaly, the decision is always presumed to be regular," Bunye said.

Meralco president, Jesus Francisco, earlier said that the company has to improve its financial position, thus the increase in its rate.

Meralco’s total outstanding debt as of 2002 was P32 billion.