Meralco still owes P6.3 billion in refund

Business World Online
Posted on December 09, 2011 07:05:44 PM


DISTRIBUTION UTILITY Manila Electric Co. (Meralco) still needs to pay out P6.3 billion in refunds to customers in line with a Supreme Court, the Energy Regulatory Commission (ERC) said on Friday.
"Out of the P30.3 billion refund program ordered by the Supreme Court, Meralco has paid a total of P23.9 billion as of the end of September," said ERC Executive Director Francis Saturnino C. Juan in an interview with reporters.


"This represents about 79.6% of the total amount and Meralco still needs to complete the refund process for the remaining P6.3 billion by Dec. 31, 2015," he added.


Meralco was ordered by the Supreme Court in 2001 to refund overcharges since 2004. The refund process was supposed to end last year.


"Meralco asked for an extension so they would be able to locate customers they owe a refund to those who have not filed refund applications," said Mr. Juan.


"They told the commission that they are eyeing several options if they will not be able to locate the customers," he added.


Options include filing for additional extensions until customers have filed refund applications and to put the money in an escrow that could be remitted to the government at a later date.


The refund was in four stages, with the first benefitting residential users. The power distributor is in the fourth phase to that covers commercial and industrial customers.


For the nine months ending September, Meralco posted a core net income growth of 27.4% to P11.66 billion from P9.15 billion in the previous year. Its consolidated reported net income rose 24.9% to P9.95 billion from P7.97 billion.


Shares of Meralco closed at P238, down 2.46% from its previous close of P244 apiece. -- E. N. J. David