Lawmaker urges Meralco to stop imposing ‘convenience’ fees

Lawmaker urges Meralco to stop imposing ‘convenience’ fees

MANILA, Philippines — A senior lawmaker on Sunday called on the Energy Regulatory Commission (ERC) to stop the Manila Electric Co. (Meralco) from charging consumers the P15 convenience fee for online transactions.

Surigao del Sur Rep. Johnny Pimentel maintained that Meralco should cease from “nickel-and-diming” its customers using its online portal to pay their monthly bills.

“Meralco is nickel-and-diming its 7.9 million customers with the extra charge on top of their actual electricity bills,” said Pimentel, who is vice chairperson of the House committee on legislative franchises.

READ: House urged to support calls for new Meralco franchise

He explained that “nickel and dime” is a pricing scheme where a business collects extra small fees for what are supposedly additional services, pointing out that the amassed extra small fees total to a lot of cash over time.

“Meralco claims that the convenience fee goes to its payment partner, CIS Bayad Center Inc. However, Bayad Center, which is engaged in the bills payment collection business, is actually 95 percent-owned by Meralco itself,” Pimentel said.

READ: Another group backs Meralco’s franchise renewal

“Thus, there is no separate Meralco partner. It is Meralco itself ultimately collecting the convenience fee,” the lawmaker said.

He urged the ERC to compel Meralco to scrap the convenience fee, which has become an “inconvenience” to customers reeling from high utility bills and inflation.

Consumer protection

Pimentel emphasized that under Republic Act No. 7394, or the Consumer Act of the Philippines, the State is duty-bound to protect the interests of consumers, promote their general welfare and set the standards for the conduct of trade and commerce.

Meralco is currently seeking the renewal for another 25 years of its congressional franchise, which is undergoing the scrutiny of the House panel on legislative franchises.