Meralco sets Nov start for meter deposit refunds

MANILA, Philippines - Lopex-led Manila Electric Co. (Meralco), the country’s largest power distributor, will begin refunding meter deposits this year ahead of a January 2009 deadline. Meralco officials told a press briefing that the firm was targeting a November start for the refunds. It will begin with small customers and go up the consumption ladder. Meralco first vice-president and customer retail services head Roberto R. Almazora said an average of P800 per account would be issued in November for those consuming less than 100 kilowatt-hours monthly. A total of P2.8 billion will be refunded, with P1.5 billion as principal and P1.3 billion for interest. "Of course the interest will vary depending on the schedule of the customer," Mr. Almazora said. Residential consumers will account for 61% of the total refund amount, followed by industries at 30.5%, small business at 6.5%, and others taking the remaining 2%. "We will likely spend three-fourths of the time refunding residential customers, since lifeline users alone reach 1.8 million in number," Mr. Almazora said. He also stressed that only those individuals who applied for Meralco accounts would be authorized to claim the refund, or those showing proof that they were affiliated to the subscriber in the event that latter cannot claim the amount. Customers who defer their claim will not be able to enjoy added interest since the gains will stop within their scheduled periods and after notification from Meralco. Meralco customers have the option of getting the refund in cash, check or credited to future or unpaid bills. Guidelines will be released in October and customers will be notified via their electricity bills if they can already claim their refunds. In 1987, the Board of Energy allowed all distribution utilities to collect meter deposits, which was carried over by the Energy Regulatory Board and the Energy Regulatory Commission (ERC). Given changes in the regulatory environment, the ERC later mandated an end to the meter deposits. — Ava Kashima K. Austria, BusinessWorld