Meralco okays shortlist of adviser banks

The Manila Electric Co. (Meralco) said yesterday is has approved a shortlist of adviser banks that would help the company in restructuring its financial position once the order of the Supreme Court to refund customers becomes final and executory.

In a statement, Meralco said the shortlist was approved by the six-member special committee of the board in its meeting held last Dec. 6.

The company said the selection of a financial advisor is consistent with the decision of the special committee which was mandated to pursue measures ensuring the firm’s long-term viability.

The board has initiated a process of identifying a credit coordinator and/or a financial advisor.

The special committee emphasized that the interest of all Meralco stakeholders which include its customers, investors, suppliers and creditors, among others, will be carefully weighed and considered in formulating solutions to a number of challenging problems within the current regulatory environment.

The special committee of the board is composed of Cesar E. Virata, former prime minister and current president of the Bankers Association of the Philippines, as chairman; and members are Washington Z. Sycip, SGV founder; Octavio Victor Espiritu, former president of Far East Bank and Trust Co.; Christian S. Monsod, former Comelec chairman and 1986 Constitutional Commission member Monico V. Jacob, former chairman of Petron Corp. and commissioner of the Securities and Exchange Commission; and Emilio Vicens, Union Fenosa S. A. country representative for the interests of foreign investors.

As this developed, Energy Secretary Vincent S. Perez said they are studying if Meralco can continue to participate in the so-called Special Program to Enhance Electricity Demand (SPEED) program.

The Energy Regulatory Commission (ERC) is set to issue within the week a provisional authority to implement the public and private sector-led SPEED.

In August this year, Napocor and Meralco launched SPEED through the initiative and supervision of the Department of Energy (DOE) and the Department of Trade and Industry (DTI). It will provide a 92-centavo discount to big industrial and commercial users on incremental electricity consumption.

The scope of the SPEED program, which was originally intended for some 656 large industrial and commercial customers in the Meralco franchise area covering Metro Manila and nearby provinces such as Bulacan, Rizal, Cavite and Batangas, was expanded.