Tuesday, November 25, 2008 Group wants Meralco assets
A CONSUMERS’ group on Monday asked the Energy Regulatory Commission (ERC) to issue a writ of execution on the assets of utility giant Manila Electric Company (Meralco) to finally refund the P3.9 billion that it overcharged to its customers under the currency exchange rate adjustment (Cera) system.
In a petition, Pete Ilagan, president of the National Association of Electricity Consumers for Reforms (Nasecore), said the attachment of Meralco assets is not directly related to its electricity distribution business because of the company's refusal to refund the P3.9 billion.
After the attachment, Ilagan said, the assets can then be liquefied by auctioning the same to the public, with the proceeds to be used to cover the Cera refund of Meralco customers.
He said Meralco, in numerous instances, had manifested that it will not and cannot comply with the Cera refund order of the ERC given its alleged insufficient operating funds.
Last September 26, the ERC ordered Meralco to refund the P3.9 billion it overcharged to its customers under the Cera mechanism.
But Monico Jacob, head of Meralco's Regulatory Management Office, said they already filed a motion for reconsideration with the ERC.
“We’ve already filed a motion for reconsideration with the ERC and we’re waiting for the decision,” Jacob said in a phone interview.
Asked if the attachment of the Meralco assets would compel them to refund the P3.9 billion, Jacob said: “I cannot answer that, I haven’t seen the petition yet.”
Nasecore said that among the assets of the Lopez group which could be attached include the 51 percent of Rockwell Land Corp. owned by Meralco, the 40 percent of First Private Power Corp. also owned by the power firm, the 35 percent holdings of Meralco in General Electric Phils. Meter and Instrument Co. Inc., Republic Surety and Insurance Corporation which is wholly owned by Meralco, Meralco Energy Inc., e-Meralco Ventures Inc., and Meralco Financial Services Corp.
Earlier, Meralco vice president Ivanna dela Pena explained that at the moment, the company could not afford to fund the Cera refund since "it is in no position to implement it."
The ERC in its ruling denied Meralco's request for deferment of the Cera refund implementation after the company failed to convince the agency that "it is just and warranted." (MSN/Sunnex)
