MANILA, Philippines—Manila Electric Co. (Meralco) customers may be in for refunds as regulators told the power distributor to get back at least P9.85 billion for double charges on transmission line costs paid to successor companies of National Power Corp. (Napocor).
Overcharging allegations stemmed from line rental payments of Meralco to the Wholesale Electricity Spot Market (WESM), which has a component for the same line losses imposed by successor-firms of Napocor facilities. The WESM charges were eventually remitted to the generators, including Napocor, whose assets are managed by the state-owned Power Sector Assets and Liabilities Management Corp.
Such costs are shouldered by Meralco’s clients.
In a decision, the Energy Regulatory Commission (ERC) said the power generation companies owed almost P4.67 billion.
The ERC also said that on top of the P4.67 billion, Meralco should seek subsequent payments beyond Aug. 2012 “until the actual cessation of the collection” of the 2.98 percent line loss charge under Napocor’s supply contract with Meralco.
ERC also upheld its order dated March 4, 2013, where it directed Napocor to fully refund almost P5.18 billion to Meralco through disbursements of about P73.94 million per month.
The regulator also directed Meralco to file a petition for dispute resolution against generation firms Masinloc Power Partners Co. Ltd, AP Renewables, Therma Luzon Inc., San Miguel Energy Corp., and Sem Calaca Power Corp. to settle the issue.
“The Commission abides by the principle that line loss shall only be charged once,” ERC said in its latest order.
ERC director Francis Saturnino Juan earlier said Napocor was to make the refund to Meralco by paying the amount of P73.945 million per month until such time that the overpayments shall have been refunded in full.
The refunds are seen to reduce the charges passed on to Meralco customers.
Meralco filed its petition against Napocor in September 2008 demanding the refund of its overpayments. The petition stemmed from the inability of Meralco and Napocor to implement their contract provision on the reconciliation of the 2.98 percent line loss charge incorporated in Napocor’s rates imposed on Meralco and the actual line rental payments made by the power distributor to the Philippine Electricity Spot Market, as operator of the Wholesale Electricity Spot Market.