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Wednesday, April 30, 2003
Double bad news for top Philippine utility firm (1:53 pm)
MANILA -- Top power distributor Manila Electric Railway and Light Company (Meralco) suffered a double blow Wednesday, reporting it swung into the red last year and hearing the Supreme Court has upheld a potentially massive refund to customers.
A Supreme Court statement said it would allow no further appeals against an earlier ruling ordering Manila Electric Co. (Meralco) to reimburse customers overcharged between 1994 and 1998.
Consumer groups earlier said the refund could run up to P29 billion (US$547 million dollars). Meralco officials have warned that it could drive the company into bankruptcy, and lodged an unsuccessful appeal to limit the refund to one year.
"No further pleadings shall be entertained in this case. Let entry of judgment be made in due course," court clerk Julieta Carreon said in a written memorandum to Meralco lawyers.
Meanwhile, Meralco said Wednesday it booked a net loss of P2 billion pesos last year, compared with a P1.4 billion-net profit in 2001.
Meralco president Jesus Francisco told financial news service AFX-Asia that his company will likely return to a net profit in the three months to March due partly to higher electricity sales.
"We are going to report a good figure for the first quarter. Our sales were very healthy and our systems loss lower than last year," he said without giving any figures.
On the Philippine Stock Exchange, Meralco A shares rose 20 centavos to close at P6.90, while B shares gained 30 centavos to P10.
Francisco said the 2002 net loss was largely due to the failure to collect deferred purchased power adjustment charges from customers. AFP
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