Scope of Rate Adjustment
- The reduction does not apply uniformly to all consumers.
- Residential consumers with monthly electricity consumption of 90 kilowatt-hours or less, and certain other consumer groups, were excluded from the provisional rate increase and therefore are not affected by this reduction.
Implementation Instructions
- The Secretary of the Department of Public Works and Communications is tasked to immediately implement the directive to reduce MERALCO’s provisional rates as specified.
- MERALCO is instructed to submit a revised rate schedule within 24 hours.
- The revised schedule will be subject to approval by the President.
Role of the Board of Power and Waterworks
- Upon its organization, the Board of Power and Waterworks will hold public hearings.
- These hearings will determine the final approved rates for MERALCO.
Public Service Commission’s Original Order and Its Amendment
- The PSC’s May 29 Order initially approved the full amount of the rate increase requested by MERALCO without a preliminary determination of entitlement.
- The PSC order allowed for refund or credit to customers if the final rates determined after hearing are lower than the provisional rates collected.
- This Letter of Instruction amends the original PSC order by reducing the provisional rate increase and setting the conditions for implementation and review.
Legal Authority and Issuance
- The directive is issued by the President of the Republic of the Philippines.
- This instruction serves as an amendment to the previous PSC order concerning MERALCO’s rate increase.
- It serves to ensure fair economic regulation of public utility rates in the interest of consumers and public welfare.