Refund bill deposits too, Loren tells Meralco

Senator Loren Legarda said yesterday that Manila Electric Company (Meralco) should immediately refund not only the meter deposits of its customers, but also the bill deposits the company collected from them.

Legarda issued the statement in reaction to an announcement by Meralco that it would refund consumers P1.5 billion starting next January, representing the principal amount of the meter deposits.

"There must be a full accounting by the Energy Regulatory Commission (ERC) whether the total meter deposits of Meralco customers, including interests earned through the year, would amount only to a total of P2.8 billion," she said.

The senator stressed that the bigger amount representing the bill deposits of Meralco customers should be refunded too by Meralco the soonest possible time.

Together, the meter and bill deposits refundable by Meralco customers are said to amount to about P21 billion.

The collection of meter deposits had been disallowed already by the government. The bill deposits, on the other, represent the projected consumption of users each month, for which Meralco reportedly charges a two-month deposit.

The bill deposits should be immediately refundable once an electrical consumer has established a good track record of promptly paying his bills, Legarda said.

"Since bill deposits are being collected by power distributors, I wonder why Meralco is quick in disconnecting consumers who had been delayed in paying a month's bill," she said.

"The deposit is supposed to be collected to cover such contingencies," Legarda added.

In a directive last June 4, the ERC ordered Meralco to refund its customers billions worth of meter deposits, including interest.

Under the ERC directive, Meralco and other private distribution utilities should start issuing the refund six months after the effectivity of the rules. The rules will become effective 15 days after publication in a newspaper of general circulation.

Legarda also cited the concern of customers that Meralco might not be able to release the meter and bill deposits and interests since the company had admitted in an ERC hearing that it had used part of these deposits for its daily operations and also invested in high-yielding financial instruments.