PSALM reviewing Meralco's P9.1-B refund claim

MANILA, Philippines - The Power Sector Assets and Liabilities Management Corp. (PSALM) is still reviewing the claim of Manila Electric Co. (Meralco) for P9.1 billion in refunds.

“PSALM is currently reviewing and evaluating the voluminous documents submitted by Meralco in its compliance to ensure the accuracy of the computation of the refund/collection of line rental adjustments to consumers,” PSALM president and CEO Emmanuel Ledesma Jr. said in a statement.

In July, Meralco submitted its computation to the Energy Regulatory Commission (ERC), saying PSALM overcharged Meralco customers by P9.1 billion.

Specifically, Meralco submitted the summary of transition supply contract (TSC) line loss computation and supporting official receipts covering the period from July 2006 to May 2012.

“PSALM will proceed with the refund as soon as all the parties faithfully comply with the ERC directives in its decision dated March 2010,” Ledesma said.

In March 2010, ERC ruled that there was double charging in transmission line costs for TSC quantities during the start of operations of the Wholesale Electricity Spot Market (WESM) in Luzon.

However, Ledesma said the P9.1 billion claimed by Meralco is “premature considering that the final amount is yet to be determined after the ERC approves the implementation of a refund/collection scheme.”

ERC executive director Francis Saturnino Juan said the power sector regulator has required PSALM, WESM administrator Philippine Electricity Market Corp. and Meralco to submit supporting documents.

Juan said the ERC is waiting for PSALM to submit its documents before the ERC board evaluates the computation of both parties.

“It will always boil down to the benefit of the consumers,” Juan said.

Consolidated customer accounts of Meralco, the country’s largest power distributor, rose 3.7 percent to a record 5.11 million as of end-June as the company added 88,391 new customers from the start of the year.