Philippines: ERC approves Meralco refund order

Philippines: ERC approves Meralco refund order

THE Energy Regulatory Commission (ERC) has approved an order requiring
Manila Electric Co. (Meralco) to implement next month its refund to its
electricity customers covering nearly P7 billion worth of over-recoveries
for the past few years.

ERC spokesperson Floresinda B. Digal said the approved refund will result in
an average of P0.75 per kilowatt reduction in a three-month period starting
June.

"We're positive that it will be fully implemented in June. We have enough
time to notify Meralco before the June billing," Ms, Digal said in a phone
interview on Friday.

Ms. Digal said that the order was originally approved on May 2 but the
preventive suspension order of the agency's chairman, Jose Vicente B.
Salazar, stalled the release of the order.

"[T]he Commission headed to confirm it in its special commision meeting in
May 11, yesterday (Thursday). They confirmed it with the same amount, the
same recovery period, it's just that so we can promulgate it without the
issue on the Chairman," she added.

The order is now being circulated among the ERC commissioners for signature,
ahead of its release.

A statement earlier uploaded on the ERC's Website said Meralco applied on
March 31 for the rate adjustment in view of the refund. This is intended to
reflect its over-recoveries for the period January 2014 to December 2016 of
P5.847 billion plus P1.08 billion worth of real property tax payments as
deductions from the total refund.

The distribution utility proposed to refund the amount over the next 36
months but the commission disallowed this and instead ordered the company to
pay P6.927 billion over three months.

Meralco's controlling stakeholder, Beacon Electric Asset Holdings, Inc., is
partly owned by Philippine Long Distance Telephone Co. (PLDT).

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary
MediaQuest Holdings, Inc., has an interest in BusinessWorld through the
Philippine Star Group, which it controls.

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Link to Original Article:
http://www.bworldonline.com/content.php?section=Economy&title=ERC-approves-M
eralco-refund-order&id=145136

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John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com