ERC orders Meralco to publish list of P4.41-billion tax refund qualifiers

By Lenie Lectura - February 20, 2019
https://businessmirror.com.ph/2019/02/20/erc-orders-meralco-to-publish-list-of-p4-41-billion-tax-refund-qualifiers/

THE Energy Regulatory Commission (ERC) has directed the Manila Electric Co. (Meralco) to submit a proposed scheme for the unclaimed tax refund amounting to P4.41 billion as of end-September 2018.

The utility firm was ordered to submit within 10 days from receipt of the February 4 order an updated report on the gross and net amount of refund as of December 31, 2018.

“It is incumbent upon Meralco to inform its customers immediately upon receipt of the ERC order through the publication in a newspaper of general circulation, for four consecutive weeks, of a notice to all consumers to claim their refund,” ERC Chairman and CEO Agnes VST Devanadera stated.

Meralco was also enjoined to deposit in a separate interest-bearing bank account the unclaimed amount of the income tax refund, for transparency and easy monitoring purposes. Meralco was required to submit the detailed list of customers who have not yet claimed their refund within 30 days from receipt of the ERC order.

Meralco was also instructed to post in all its business offices the notice and the list of names of customers who have not claimed the tax refund for their information and reference.

“We are now in a new regulatory regime where consumer benefit is given primal consideration. This new set of ERC officials will see to it that consumers do not only get billed with just and reasonable rates, but we will also ensure they get the best value for their hard-earned money,” the ERC chief said.

Meralco has until June this year to disburse the P4.41 billion of unclaimed refund owed to its customers.

The amount was supposed to complete the implementation of the Supreme Court (SC) directive on income tax refund amounting to P30.23 billion to Meralco customers until 2010.

The utility firm was not able to finish it. Thus, it asked the ERC to extend the implementation for five years or until December 2015. The ERC approved this.

Meralco sought another extension for three years or until December 2018.

The ERC acted on Meralco’s application to extend the implementation of the SC tax refund directive only on December 19, 2018.

“The motion filed on December 18, 2015, by Meralco for authority to extend or continue the implementation of the SC tax refund to eligible accounts or customers under Phases I to IV, three years from January 1, 2016 or until December 31, 2018, is hereby approved with modification,” the ERC said.

The ERC cited five conditions. One was for Meralco to continue with the implementation of the SC directive on income tax refund to eligible customers under Phases I to IV until June 30, 2019.