My former student asked my opinion about the recent Energy Regulatory Commission decision on the Meralco refund application. Having been assured that there is no pending case on the matter, I hereby oblige, as a teacher must.
In December 2020, Meralco also filed an application for the approval of a refund scheme where it proposed to true-up and compare its Actual Weighted Average Tariff as against the approved IAR. The dissent suggests that the ERC should have instead considered the AWAT application as a rule-making petition and incorporated Meralco’s proposal into the Revised RDWR that was issued in 2021. However, the idea of formulating a rule to govern a regulatory period that already lapsed may not only violate non-retroactivity of rules but, more significantly, it also conflicts with the principles of the PBR scheme.
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