Meralco vows to begin refund of meter deposits Nov. 1

MANILA, Philippines - Lopez-led Manila Electric Co. (Meralco), the country’s largest power distributor, has set guidelines for meter deposit refunds next month. In an advertisement published in newspapers, it announced that starting Nov. 1, customers can claim refunds in Meralco business centers. A total of P2.8 billion will be refunded, with P1.5 billion as principal and P1.3 billion in interest with an average of P800 per account for those consuming less than 100 kilowatt-hours monthly. As provided by the Energy Regulatory Commission (ERC) in an order last June, the refund for customers will include interest income on the deposits at 6% for those who paid before 1995, or when the rules governing electric power service were issued by the former Energy Regulatory Board, and 10% after 1995 up to the implementation of the Magna Carta for Residential Electricity Customers in June 2004. ERC computations showed that a residential consumer who paid a P1,000 meter deposit in 1994 should be entitled to a P2,200.82 refund by the time the rules take effect this year. Residential consumers scheduled to get refunds from November up to the year 2011 will account for 61% of the total refund amount, followed by industries at 30.5%, small businesses at 6.5%, and others taking the remaining 2% scheduled in 2012. Those who failed to claim their meter deposits meanwhile will be able to do so in 2013. Meralco customers have the option of getting the refund in cash, check, or an offset in future or unpaid bills. Earlier, Meralco officials said that instead of next year, the power utility will be advancing the refund to next month. Meralco president Jesus P. Francisco said that the utility was coordinating with the Bureau of Internal Revenue regarding tax procedures and was optimistic the refund would push through in November. - BusinessWorld