ERC approves third phase of Meralco refund

The Energy Regulatory Commission (ERC) approved in an executive session yesterday the third phase of the Meralco refund based on the recommendation of its Regulatory Operations Service (ROS).

The new order instructs Meralco to complete the third phase of the refund scheme within six months starting in January 2004. The period of refund is 18 months shorter and starts four months earlier than Meralco’s proposal.

“Meralco is expected to complete phase 2 of its refund scheme in December this year. There is no reason why it cannot initiate the third phase in January next year,” ERC Chairman Manuel R. Sanchez said.

The Commission further disagreed with the electric distribution utility’s plan to refund customers only through billing credits. “The third phase also involves residential customers just like the first two phases. We cannot allow Meralco to restrict their options in collecting the amount due them,” the ERC chief stressed.

ERC orders Meralco to give its customers the option of receiving the refund either in cash or through billing credits.

The third phase of the refund will amount to P4.914 billion and will cover 823,000 residential customers that have a a monthly consumption of more than 300 kWh.

The refund was ordered by the Supreme Court that ruled in finality that income taxes cannot be considered an expense that can be recovered from the costomers of Meralco.

November 20, 2003