The Energy Regulatory Commission (ERC) is directing all private distribution utilities (DUs) to refund unused fees collected from consumers by the distribution utilities under the periodic regulatory reset administered by the commission.
The regulatory agency previously approved the power distribution utilities to collect those fees each time they hire technical experts for regulatory rate reset.
Under this regulatory process, distribution utilities must submit their proposed projects and expenditures for a given period — usually five years.
However, no fees were actually paid since the DUs did not use technical experts.
ERC said the refund, estimated at P1.18 billion, must be enforced over a one-month period for 16 DUs, except Clark Electric Distribution Corp. which was given a refund period of two months.
From the 17 DUs, the Manila Electric Co. (Meralco) has the biggest refund to give back at P987.16 million
The refunds will be reflected as separate line items in the electricity bills of consumers.
ERC said the refunds will vary for each DU. For Meralco, the refund will be P0.22 per kWh.
The regulatory agency is yet to issue an official order for the refund to be collected starting next year.
ERC said the difference between the amount that must be returned and the actual refund disbursed to consumers will vary during the regulatory rate reset to be conducted.
Clark Electric Distribution has the second biggest amount to refund at P37.883 million.
The distribution company is 65 percent owned by Meralco, with the remaining 35 percent held by J Ten Equities Inc.
Asked for comment, Meralco said it will be ready to comply but will wait for the ERC’s official resolution of the matter.
