Meralco to refund P1B due to SC order voiding GRAM
The Philippine Star 09/15/2006
The Manila Electric Co. (Meralco) is likely to refund its customers about P1 billion starting January 2007 with the recent Supreme Court’s order voiding the company’s application for a second generation rate adjustment mechanism (GRAM).
In its application for approval with the Energy Regulatory Commission (ERC), Meralco said it will start its refund scheme by next year and will be implemented over the span of three months across all customer groups.
Meralco’s head of utility economics Ivanna dela Pena said they requested to undertake the refund next year to give the utility firm ample time to determine which customers are entitled to the refund.
The 2nd GRAM application nullified by the High Tribunal covered the period from June to August 2004.
"It will take us some time to retrieve the data from our customers which will determine their per kilowatt-hour (kwh) consumption for the period covering June to August 2004," Dela Peña said.
Based on Meralco’s proposal on the mode of the refund, it said it may deduct it to the customers’ bills.
The power utility firm believes this scheme will be ‘convenient’ for the customers since the average refundable amount is very small as compared to their average monthly bill.
But Meralco pointed out that the credit-to-future-billing mode will also be cost-efficient for the company.
"It also provides minimal operational implication and cost on the part of the company," Meralco said in its ERC application. Based on its ERC submission, Meralco noted that a household with a monthly consumption of between 201 to 300 kwh can expect a refund of about P35. Households consuming 401 kwh and above can expect a monthly refund of P110.
Commercial customers with the highest monthly kwh consumption can expect a refund of P191,000 while industrial customers with the highest monthly consumption can expect a refund of P986,000.
According to the Meralco official, the refund scheme is part of their compliance with the ERC’s order.
She admitted that this new refund scheme will affect the company’s cash flow. It would be recalled that Meralco is being ordered to refund some P30 billion worth of overcharges to customers. It has nearly completed the refund process and is in the last phase of the P30-billion refund scheme.
Earlier, Meralco said it will file a formal petition to recover the cost which will be subjected to public hearing.
The Manila Electric Co. (Meralco) is likely to refund its customers about P1 billion starting January 2007 with the recent Supreme Court’s order voiding the company’s application for a second generation rate adjustment mechanism (GRAM).
In its application for approval with the Energy Regulatory Commission (ERC), Meralco said it will start its refund scheme by next year and will be implemented over the span of three months across all customer groups.
Meralco’s head of utility economics Ivanna dela Pena said they requested to undertake the refund next year to give the utility firm ample time to determine which customers are entitled to the refund.
The 2nd GRAM application nullified by the High Tribunal covered the period from June to August 2004.
"It will take us some time to retrieve the data from our customers which will determine their per kilowatt-hour (kwh) consumption for the period covering June to August 2004," Dela Peña said.
Based on Meralco’s proposal on the mode of the refund, it said it may deduct it to the customers’ bills.
The power utility firm believes this scheme will be ‘convenient’ for the customers since the average refundable amount is very small as compared to their average monthly bill.
But Meralco pointed out that the credit-to-future-billing mode will also be cost-efficient for the company.
"It also provides minimal operational implication and cost on the part of the company," Meralco said in its ERC application. Based on its ERC submission, Meralco noted that a household with a monthly consumption of between 201 to 300 kwh can expect a refund of about P35. Households consuming 401 kwh and above can expect a monthly refund of P110.
Commercial customers with the highest monthly kwh consumption can expect a refund of P191,000 while industrial customers with the highest monthly consumption can expect a refund of P986,000.
According to the Meralco official, the refund scheme is part of their compliance with the ERC’s order.
She admitted that this new refund scheme will affect the company’s cash flow. It would be recalled that Meralco is being ordered to refund some P30 billion worth of overcharges to customers. It has nearly completed the refund process and is in the last phase of the P30-billion refund scheme.
Earlier, Meralco said it will file a formal petition to recover the cost which will be subjected to public hearing.
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