Meralco prepares refund for commercial customers
Business World, Friday, January 14, 2005
Lopez-led Manila Electric Co. (Meralco) is preparing to pay off P2.28 billion in overcharges to some 103,425 small commercial and industrial customers starting next month.
Meralco, the largest power distributor in Luzon, said it had received an order from the Energy Regulatory Commission (ERC) to implement Phase IV of its court-ordered refund.
Leo Mabale, Meralco senior assistant vice president and refund management task force head, said the ERC wants the refund credited to future billings over a specified period of 18 months starting January.
"Although we recognize and adhere to ERC's order, we need to inform the commission on the difficulties of starting the implementation this month. We received the order only on January 6 and we cannot implement it midway in the January billing cycle," Mr. Mabale said.
He said the Bureau of Internal Revenue (BIR) had notified Meralco that it intended to tax the refund of customers under Phase IV and designate the power firm as its withholding agent.
"We hope to clarify with the BIR and ERC all of these matters including the tax rules and mechanics at the soonest possible time so we can hopefully implement the refund by February at the earliest," Mr. Mabale said.
He also said Meralco was also directed to submit to the ERC the details of its refund proposal and a refund implementation status.
Phase IV-A of the refund benefits small commercial and industrial customers, government hospitals and metered streetlight customers with contracted demand of less than 40 kilowatt-hours. Flat streetlight customers are also included.
By December 2004, Mr. Mabale said Meralco had completed processing refunds for active and terminated residential/general service customers, which covers 5.1 million electricity users. These represent 98% of customers entitled to a refund.
The amount processed for refund stands at P11.6 billion or 38% of the total refundable amount, Mr. Mabale said.
Meralco is repaying customers in line with a Supreme Court order issued in April 2003 to refund excess charges dating back to 1994. The refund is estimated to total some P30 billion
Lopez-led Manila Electric Co. (Meralco) is preparing to pay off P2.28 billion in overcharges to some 103,425 small commercial and industrial customers starting next month.
Meralco, the largest power distributor in Luzon, said it had received an order from the Energy Regulatory Commission (ERC) to implement Phase IV of its court-ordered refund.
Leo Mabale, Meralco senior assistant vice president and refund management task force head, said the ERC wants the refund credited to future billings over a specified period of 18 months starting January.
"Although we recognize and adhere to ERC's order, we need to inform the commission on the difficulties of starting the implementation this month. We received the order only on January 6 and we cannot implement it midway in the January billing cycle," Mr. Mabale said.
He said the Bureau of Internal Revenue (BIR) had notified Meralco that it intended to tax the refund of customers under Phase IV and designate the power firm as its withholding agent.
"We hope to clarify with the BIR and ERC all of these matters including the tax rules and mechanics at the soonest possible time so we can hopefully implement the refund by February at the earliest," Mr. Mabale said.
He also said Meralco was also directed to submit to the ERC the details of its refund proposal and a refund implementation status.
Phase IV-A of the refund benefits small commercial and industrial customers, government hospitals and metered streetlight customers with contracted demand of less than 40 kilowatt-hours. Flat streetlight customers are also included.
By December 2004, Mr. Mabale said Meralco had completed processing refunds for active and terminated residential/general service customers, which covers 5.1 million electricity users. These represent 98% of customers entitled to a refund.
The amount processed for refund stands at P11.6 billion or 38% of the total refundable amount, Mr. Mabale said.
Meralco is repaying customers in line with a Supreme Court order issued in April 2003 to refund excess charges dating back to 1994. The refund is estimated to total some P30 billion
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