Meralco finds refund order manageable

Meralco customers will pay four centavos less per kilowatt-hour beginning this month following a refund order by the Energy Regulatory Commission (ERC).

The reduction represents Meralco’s overcollection of P3.92 billion on its Currency Exchange Rate Adjustment or CERA.

The distribution utility welcomed the new order, feeling the recalculation of the amount and period of payment cushioned the impact of the refund imposed by the ERC.

"We feel that the refund will now be manageable with respect to our cash flow," said Ivanna de la Pena, Meralco Vice President and Head for Utility Economics.

The refund was initially ordered to reflect in the November 2008 billing at 14.16 centavos per kilowatt-hour for a period of 12 months, but Meralco filed a motion to defer the CERA refund, citing its inability to abide by the order.

The ERC in its order said, "However, the commission is cognizant of the fact that requiring Meralco to refund the amount of Ph3,924,922,762.58 would result in substantial and tremendous impact on its financial resources. Thus, the Commission deems it reasonable to recalculate the amount and the period of CERA refund in order to cushion its impact on Meralco’s financial viability."

De la Pena said it might take them about three years to complete the refund.

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