Meralco to start P1.5-B meter refund in January 2009
By Abigail L. Ho
Philippine Daily Inquirer
First Posted 21:34:00 08/18/2008
Filed Under: Electricity Production & Distribution, Consumer Issues
MANILA, Philippines -- The Lopez-led Manila Electric Co. will be refunding at least P1.5 billion worth of meter deposits to its customers by January 2009.
According to the company, it submitted to the Energy Regulatory Commission an accounting of the principal part of the meter deposits that it would have to give back to customers, and the amount as of June 30 was a little more than P1.5 billion.
On top of the principal amount, the distribution utility would also have to return to customers interest on the meter deposits, which should bring the total to about P2.8 billion.
ERC’s meter deposit guidelines took effect on July 5, marking the start of the six-month countdown to implementation.
This means that Meralco has to implement the refund process from January 5, 2009, to January 2014.
Meralco started collecting meter deposits—representing half the cost of electric meters—in 1987. At that time, the applicable interest was six percent.
Under the ERC refund guidelines, residential and nonresidential customers who paid their meter deposits prior to the effectivity of the Energy Regulatory Board resolution on September 22, 1995, will be entitled to an interest of six percent a year. These are Meralco customers who paid the deposit from 1987 to 1995.
Those who paid their meter deposits after the issuance of the ERB resolution and until the day prior to the effectivity of the Magna Carta for Residential Electricity Consumers and the Distribution Services and Open Access Rules (DSOAR), on the other hand, will enjoy a 10-percent interest a year.
Electricity users who paid from the effectivity of the Magna Carta in 2004 or the DSOAR in 2006 until the day before the implementation of the refund will be entitled to an interest of six percent a year.
Thus, different interest rates will apply to different periods within a customer’s subscription to the distribution utility.
Customers can choose to get their meter deposit and interest refunds in cash or check, or just have these credited to their future monthly electricity bills. They can also use the refund amount to offset due and demandable claims against them.
Private distribution utilities, including Meralco, should start issuing the refunds six months after the effectivity of the rules.
Nonstock and nonprofit electric cooperatives, on the other hand, had 24 months upon the effectivity of the rules to prepare for the issuance of their own refunds.
They have 66 months to complete the refund.
As for the meter deposits that will be unclaimed, these will be placed in an escrow account in a bank that the concerned distribution utility will choose.
If these remain unclaimed 10 years after the opening of the escrow account, the money will be turned over to the government.
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