ERC approves MERALCO refund scheme

The Energy Regulatory Commission (ERC) approved the Manila Electric Company’s (MERALCO) refund scheme for the PhP 0.1327/kwh adjustment in its Generation Rate for the period June to August 2004 that was declared void by the Supreme Court (SC).

“MERALCO’s refund will be reflected in the bill of the customers starting January 2007. The refund will be spread over three (3) months considering that the refundable GRAM amount was likewise incurred for three (3) months,” ERC Chairman and CEO Rodolfo B. Albano, Jr. announced.

As can be recalled on 01 September 2006, the ERC ordered MERALCO to discontinue the implementation of the ERCs adjustment mechanism for the generation cost recovery following the Supreme Court’s Decision in G.R. No. 163935 (NASECORE et al. vs. ERC and MERALCO). Also, in the said Order, consistent with the SC ruling, MERALCO was instructed to submit its proposed scheme for the refund, subject to ERC’s approval.

MERALCO’s active customers will get the refund, which will be based on their actual kWh consumption during the affected period, by way of crediting in their future consumptions. Terminated customers, however, may claim their refund over the counter through cash or check on a per customer basis.

Residential customers consuming 401 kWh and above will get the maximum average refundable amount of PhP 110.00 per month. On the other hand, lifeline consumers and those consuming up to 400 kWh will have an average refundable amount ranging from PhP 3.00 to PhP 50.00. The refund will be VAT exempt and will be reflected as an additional item in the customers’ electric bill.

“The ERC urges the customers to help the ERC ensure the proper execution of the MERALCO’s refund on the GRAM through monitoring of their billings starting next year,” Chairman Albano added.

November 6, 2006

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