Meralco refund could be delayed, says ERC

Customers waiting for a refund of the P28 billion in overcharges by the Manila Electric Company (Meralco) may be in for a long wait.

Energy Regulatory Commision (ERC) Chairman Manuel Sanchez said yesterday that the refund could be delayed due to difficulties in determining which customers were overbilled by Meralco.

The ERC is, however, doing everything to ensure that refund of Meralco’s overcharges is done, Sanchez said at a forum held at Club Filipino.

"The delay of the refund of the overcharges of Meralco will not come from us. Our role is to comply with the Supreme Court order. The delay will come from the identification of consumers of electricity," he said.

The Supreme Court earlier ordered a refund of Meralco customers who it said were overbilled between February 1994 and February 1998.

Meralco distributes electricity to consumers in Metro Manila and the surrounding provinces.

The ERC is still waiting for proposals from consumers and Meralco for the effective refund of the overcharges.

Sanchez said the Freedom from Debt Coalition (FDC) proposed that the refund be converted into shares of stocks among large companies that have refunds coming to them. Small electricity consumers, who number about 3.5 million, should be paid outright.

"We have to be patient in the process. The ERC will make sure that the Supreme Court order will be implemented in reasonable terms," he said.

On the other hand, former senator Juan Ponce Enrile asked Congress to amend Republic Act 9136 or the Electric Power Industry Reform Act (EPIRA), saying that it will only "legalize and justify the imposition of unwarranted financial burden on the people under the so-called purchased power adjustment (PPA)."

Enrile said that as early as March 7, 2001, he warned President Arroyo in a letter about the harmful provisions of the EPIRA law.

"I called her attention to the market control and monopoly of Meralco over a huge portion of the power industry, especially the exploitation of Meralco electric consumers," he said.

He added that he "pointed out to her the injurious effect of giving Meralco and other distribution companies the same right given to the National Power Corp. (Napocor) to charge electricity consumers for stranded losses on bilateral contracts with independent power producers."

Enrile said the EPIRA law did not lower the cost of electricity in the country, but instead made consumers pay even more.

He also proposed that Meralco’s performance "be scrutinized."

Enrile said he will also ask the President to veto the US$500 million the government had to borrow to cover Napocor’s PPA reduction from P1.25 to 40 centavos. Napocor was earlier ordered by the President to reduce PPA rates charged to consumers.