Results of COA audit on Meralco out next month

The Commission on Audit (COA) is expected to come out with the results of the review of Manila Electric Co’s. books next month.

The audit report is supposed to be completed this month but it was learned that there are still some details that need to be finalized before the government audit firm could release the results.

“They are now into the last part of the audit. They expect to finish it by February,” Leonardo Mabale, the utility’s regulatory affairs head, said.

Mabale said COA auditors will resume the audit of Meralco’s books in mid-January.

According to Mabale, the auditors have also been asking Meralco for some details. ”Most of the information, data and statistics they have asked for have been provided to them. They still have a few pending requests that we still have to provide.”

The COA audit should be completed in 120 days or four months which started in September 2008.

The Energy Regulatory Commission (ERC), the power sector watchdog, issued a directive to Meralco to open its books in a letter dated Sept. 3.

ERC’s order was in response to COA chairman Reynaldo Villar’s letter asking ERC to direct Meralco to open its books in relation to a Supreme Court (SC) order on the power firm’s rate increase in 2003.

Villar also asked Meralco to provide the necessary office space and other facilities that may be needed in the conduct of the rate audit.

The SC order concerned a challenge to Meralco’s electricity rates increase as approved by the ERC on May 20, 2003.

The High Court upheld the increase, but ordered the ERC to request COA to audit Meralco to see whether the increase is justified.