Govt approves MERALCO's $16.6M refund plan
Friday, November 03, 2006
Manila Electric Co. (MERALCO) will likely start refunding customers P827 million ($16.6 million) in January for generation charges imposed in 2004, the Energy Regulatory Commission (ERC) said on Thursday.
The Supreme Court ordered the Philippines' biggest power retailer in August to refund customers, saying an ERC-approved increase in June to August of 2004 was void because it was applied without a public hearing or public notice.
MERALCO said it would ask permission from the energy regulator to raise generation charges to recover the cost of the refund, arguing that the court's decision was based on a technicality.
"We are filing a new petition to recover the costs after we have refunded because we have already advanced these to the generators," MERALCO spokesman Elpi Cuna said, adding that the refund would be "revenue neutral".
Last week, the regulator approved MERALCO's refund proposal, which will be in the form of credits on three months' worth of electricity bills rather than a cash rebate.
"By January, they will start already because then they will have identified the consumers from whom they have collected and will refund," ERC Chairman Rodolfo Albano said.
"This scheme seems to be logical and is more favourable to the consumers because it will not lead to confusion," Albano added.
The company, owned 25 percent by the government and 23 percent by a unit of Spanish utility Union Fenosa SA, is still trying to complete a P30 billion-refund to consumers ordered by a court in November 2002 for years of over-billing.
For the first three quarters of 2006, MERALCO set aside P4.62 billion to cover possible losses from rate disputes before the courts.
MERALCO, which supplies power to 4.3 million homes and businesses in Manila and nearby areas, reported net profit of P229 million in the third quarter after setting aside provisions of P1.59 billion.
Without the provisions, the company's net income for the quarter would have been P1.26 billion from a net loss of P479 million a year earlier.
MERALCO A shares open to local investors lost 1.85 percent to P26.5 and its B shares open to all slid 1.59 percent to P31 in late trade. The main index edged up 0.49 percent. Reuters
posted by philpower @ 7:25 AM,
