Meralco to consult regulator about refund
Thursday, August 17, 2006
By Erik de la Cruz
XFN-AsiaLast updated 03:13pm (Mla time) 08/17/2006
MANILA Electric Co (Meralco) says it will discuss the refund that the Supreme Court has ordered it to pay with the Energy Regulatory Commission (ERC) before deciding how much it will pay and how long it will take to pay it.
On Wednesday, the Supreme Court ordered Meralco to refund to consumers a tariff increase of 0.1327 peso per kilowatt hour the company imposed in 2004 and continued to levy for 15 months, because the ERC did not follow the correct procedure in approving the increase.
Meralco officials estimate that this could cost the company up to 850 million pesos, according to newspaper reports.
"Our legal counsel will study the implications, consult and await [the] ERC's directive on this latest Supreme Court decision," Meralco spokesman Elpi Cuna said in a statement to the news media.
Cuna said it was up to the ERC to say how the company should carry out the court's order.
The Lopez family controls Meralco, the country's biggest power distributor. First Philippine Union Fenosa, a joint venture between the Lopez family's First Philippine Holdings Corp and Union Fenosa SA of Spain, holds 22.8 percent.
The government has a stake of more than 10 percent, including shares held by the Social Security System (a pension fund) and by state-owned Land Bank of the Philippines.
Meralco A-shares, available only to Filipinos, ended flat at 16.25 pesos on Thursday. Its B-shares, which are open to foreign investors, rose 1.25 to 26.00, recovering from losses triggered earlier by the court order, dealers said.
(1 dollar = 51.13 pesos)
posted by philpower @ 6:41 PM,
