THE Manila Electric Co. (Meralco) said it would abide by a court order affirming the regulator’s earlier ruling to refund its customers in the amount of P5 billion.
“The decision of the Court of Appeals [CA] affirming the ruling of the Energy Regulatory Commission [ERC] on the refund of transmission line-loss charges is a welcome relief to Meralco’s consumers. Meralco shall abide and comply with any executable order from the court or the ERC in this regard,” said Meralco First Vice President and Legal Services Head William S. Pamintuan.
The amount will be recovered by the utility firm from the National Power Corp. (Napocor) and the Power Sector Assets and Liabilities Management Corp. (PSALM).
It can be recalled that the ERC had earlier ordered the Napocor and PSALM to refund Meralco P5,176,147,098.73 from the November 2006 to August 2012 period or a payment of P73,944,958.55 per month until the overrecoveries are refunded.
The refund due to customers will be in a form of automatic reduction of the monthly generation charge that they pay in their electricity bills.
The refund order stemmed from the double charging of line-loss rentals from the implementation of a Napocor-Meralco transition supply contract (TSC) and the Wholesale Electricity Spot Market (WESM) pricing mechanism.
Both the TSC and the WESM charges contained a transmission line-loss component of 2.98 percent passed on to consumers.
The CA said its ruling was final. “The final doctrine of judgment is grounded on fundamental considerations of public policy and sound practice.
“When a decision has attained finality, it can no longer be revisited even if the modification is meant to correct what is perceived to be an erroneous conclusion,” the CA said.
Following the decision of the CA ordering Meralco a P5-billion refund to its consumers, a party-list lawmaker on Friday called on the Supreme Court to also decide the petition against Meralco for a similar overcharging during the Malampaya shutdown last year.
Party-list Rep.Neri Colmenares of Bayan Muna also asked for the additional refund of another overpricing charged on consumers during the 2008-2012 period.
“We welcome this decision and we urge the Supreme Court to also decide on our petition against the P4.15/kwh power-rate hike last year and order Meralco to also refund their overcollection,” said Colmenares, also a House senior deputy minority leader said.
On Thursday the CA Special Second Decision said Meralco had been double-charged by the Napocor and PSALM for line-loss charges.
According to the lawmaker, “It must also be noted that the Power Sector Assets and Liabilities Management Corp. still has to refund the P9.1 billion they ‘overcharged’ Meralco customers in 2008-2012.”
“As early as 2012, we have met with the Energy Regulatory Commission to demand the immediate suspension of the overpriced PSALM charges worth P9.1 billion it ‘overcharged’ Meralco customers starting in 2008. Additionally, at least 90 electric cooperatives in various provinces have also admitted that at least P4.5 billion was overcharged by the PSALM,” Colmenares added.
During that time ERC Chairman Zenaida Cruz-Ducut assured then-Bayan Muna Rep. Teddy Casiño that indeed there would be a refund but they are still working on the computation and mechanism for the refund. Ducut has also not set a time frame for the refund.
“All in all this is a very big amount at P13.6 billion and the ERC should immediately void these PSALM charges and refund it to consumers. Ang tagal na nitong nangyari at sobra-sobra ang sinisingil sa atin, dapat itigil agad ito at ibalik sa mga consumers,” Colmenares said.
The P13.6 billion covers the period from July 2008 to May 2012. The amount involved “line loss components” of line rentals, which PSALM included in its TSC with Meralco and electric cooperatives.
“If approved by the ERC, the refund will mean a significant reduction in the electric bill of Meralco and the electric cooperatives’ at least 10 million customers. The refund would be a definite and immediate relief for us consumers considering that we have been reeling from so many, so many burdens. We hope that our proposed action on this issue would be immediate and the ERC should work double for the refund,” the lawmaker said.
Colmenares also expressed hope that the latest petition against Meralco for the overcharging during the Malampaya shutdown last year will be decided soon so these can be immediately refunded.
Last year several power plants have implemented successive unplanned shutdown following the scheduled maintenance outage of the Malampaya natural gas plant. Meralco said that the said power-rate hike was triggered by the said shutdown.
(By Lenie Lectura & Jovee Marie N. dela Cruz)