ERC puts unclaimed Meralco meter deposits in escrow account

The Energy Regulatory Commission (ERC) will place the unclaimed meter deposits of the Manila Electric Co. (Meralco) in an escrow account, the top ERC official said.

ERC chairman Rodolfo Albano Jr. said the deposits not claimed for two years will be forfeited in favor of the government.

“After two years, if the deposit will not be claimed it will be forfeited in favor of the government. It’s actually in the guidelines of the Magna Carta,” he said.

The ERC, however, has yet to determine the exact amount of the meter deposits.

The ERC chief said they have started the refund of the meter deposits as required under the Magna Carta for Residential Electricity Consumers.

“For the Meralco franchise area, the refund for meter deposits is already ongoing. However, there is a registration period as prescribed in the guidelines, because you have to understand that the registered customers of Meralco reckon way back to the early 1900s,” Albano said.

According to Albano, Meralco is also required to publish the names of those eligible for the refund.

Recognizing that the refund will take time, he said consumers will be entitled to interest on the meter deposits.

“The interest will be based on the prevailing interest at the time the contract of service took effect,” he said.

The distribution utilities (DUs) and electric cooperatives, he said, should implement the refund, which is being handled by the ERC’s customer assistance service department.

The ERC noted that the refund schedule varies depending on the number of years of operation of the power utility.

The ERC has given DUs from January 2006 until 2010 to refund their respective customers.

Residential customers that registered on the first year to the 10th year of the operation of the utility will be the first to benefit from the refund.

The ERC has required electric cooperatives to file their respective refund proposals for approval as some of the coops may not have enough funds for the refund.

The Magna Carta for Residential Electricity Consumers allows the refund of bill deposits. The bill deposit is required for new and additional installations and will be refunded to a customer who promptly settles his electricity bills on or before their due date for a continuous period of three years.

As a general rule, it is only refunded to customers one month after termination of service and upon full settlement of obligations with the DUs.

The rule also exempts residential customers from paying a meter deposit in as much as the cost of electric meters is already incorporated in the calculation of the rate base for private distribution utilities.