MANILA, Philippines – The Manila Electric Co. (Meralco) said yesterday it has begun the process of refunding meter deposits – totaling P2.8 billion – to its 1.8-million customers.
Meralco first vice president and head of customer retail services Roberto R. Almazora said the refund would include corresponding interest set by the Energy Regulatory Commission under ERC Resolution No. 8.
He said the refund claim of small electricity consumers would be the first to be entertained. Meralco said a customer would first be notified through his billing if he may file an application for refund.
“The MDR (meter deposit refund) schedule aims to ensure customer convenience through orderly processing in claiming the MDR,” he said
“When notified in the electric bill, eligible residential customers will have to go to the business center specified in the bill, fill out a refund application form available in the business centers or on the Meralco website, and attach required documents to begin the processing of their MDR,” he said.
“They can choose to receive the MDR amount in cash if the MDR amount is P4,000 or less; in check if the MDR amount is more than P4,000; or apply the amount to future electric bills or to current unpaid bills or amounts to be paid to Meralco,” Almazora said.
He said that registered customers should bring pertinent documents such as original Meter Deposit Receipt, filled-out Refund Application Form (available at Meralco Business Centers or downloadable from the Meralco website www.meralco.com.ph), one valid ID with picture and signature.
Customers may also bring the original copy of the electric bill where the MDR schedule is indicated for easier verification.
Authorized representatives should bring one valid ID with picture and signature. If he is authorized to receive the MDR amount, he will need a letter of authorization from the registered customer, legal heir or successor-in-interest.
In 1987, the then Board of Energy allowed distribution utilities (DUs) to collect the meter deposit. The Energy Regulatory Board eventually stopped the collection of meter deposit.
“The Magna Carta for Residential Electricity Consumers issued in June 2004 and the Distribution Services and Open Access Rules (DSOAR) in 2006 ordered all DUs like Meralco to stop collecting the meter deposit,” he said.
In June 4, 2008, ERC released the meter deposit refund (MDR) guidelines for all DUs in the Philippines which became effective on July 5.
“We would like to inform all our customers that more details are available on our website at www.meralco.com.ph or email meterdeposit@ meralco.com.ph or call 1622-8888 or 632-8888,” Almazora said.
Petition vs CERA refund
Meralco, meanwhile, has asked the ERC to defer the implementation of the P14.16 per kilowatt-hour refund for its over-collection of currency exchange rate adjustment (CERA) covering June 2003 to December 2006.
In a motion to defer, Meralco said the recent deferment of its rate increase distribution has adversely affected its capability to refund the CERA overcollection.
CERA is intended to ease the impact of foreign currency fluctuations on Meralco’s servicing of foreign currency loans.
“Meralco is constrained to move for the temporary deferment of its CERA refund pending an improvement of its cash flow situation or otherwise until it is allowed to implement its Performance-Based Rate adjustment granted in ERC case no. 2008-004 RC and 2000-018 RC,” the company said in its motion.
ERC had earlier allowed Meralco to adjust its basic distribution charge upward to an average of 14.49 centavos per kwh under the performance-based rate (PBR).
But the commission later ordered a deferment of the increase following appeals from Trade department as well as from consumer and business groups.
“The likelihood of Meralco being able to avail of other loan facilities is very remote, or if ever, would likely be very expensive, especially with the deferment by the Honorable Commission of the implementation of its PBR rate relief,” Meralco’s motion read.
“Meralco incurred an over-recovery on the CERA by P3.091 billion. Carrying charge was applied from June 2003 to September 2009. The period represents time from which the over-recoveries were incurred until the time Meralco was able to fully refund it to its customers,” ERC earlier said.