Meralco to refund customers this month

Danessa Rivera (The Philippine Star) - July 6, 2019 - 12:00am

https://www.philstar.com/headlines/2019/07/06/1932464/meralco-refund-customers-month

MANILA, Philippines — Customers of Manila Electric Co. (Meralco) will receive a refund of 7.31 centavos per kilowatt-hour (kwh) this month – representing regulatory reset cost – in compliance with a directive from the Energy Regulatory Commission (ERC).

Regulatory reset cost represents expenses for engaging the services of regulatory experts or consultants when setting and updating electricity rates.

Based on ERC’s calculation, the one-time regulatory reset cost refund ranges from four to eight centavos per kwh.

In particular, customers of Meralco can expect a minimum refund of 7.31 centavos per kwh this month.

“In directing the refund, private DUs (distribution utilities’) customers will be benefitted by the said regulatory reset cost refund,” ERC chair Agnes Devanadera said.

The refund will reflect in this month’s billing, Meralco spokesman and public information office head Joe Zaldarriaga said in a text message.

“We will immediately comply with the ERC’s directive to reduce rates by 7.31 centavos per kwh as a one-time adjustment this month and reflect the same as a separate item,” he said.

Under the Performance-Based Regulation (PBR) methodology, privately owned DUs are allowed to charge regulatory reset cost.

“The Commission is of the view that the cost of regulation should be at the expense of the government and should not be a burden to the electricity consumers,” Devanadera said.

“The amount collected as regulatory reset cost for the third regulatory period remained unused and inasmuch as the 17th Congress appropriated funds for purposes of regulatory reset, the Commission deems it prudent to refund the amounts collected by DUs for this purpose,” she said.

Furthermore, the ERC will direct DUs to submit a report on their compliance with the particular refund directive from the power regulator.

They shall also be subject to the audit and review in the next regulatory reset to determine if further refunds are in order, it said.

Meanwhile, consumers are urged to monitor their electricity bills to see if the refund is implemented.

“Electricity consumers of privately owned distribution utilities are advised to check their electricity bills next month and find out if the regulatory reset cost refund has been effected, including any relevant interest earned thereon,” Devanadera said.

The ERC said it will also be working with Congress on measures aimed at unburdening consumers of high electricity rates.

“The Commission shall endeavor to work with the 18th Congress to seek funding support that will allow us to exercise our mandate in ways that will ease the burden on the part of our consumers,” Devanadera said.

Laban Konsyumer Inc. has commended the ERC for promoting and upholding the interest of consumers.