The Manila Electric Co. (Meralco) will have to refund some P28.15 billion in overbillings to its almost four million customers.
The Supreme Court upheld yesterday its Nov. 15, 2002 ruling compelling the power firm to refund the excess charges it billed its customers since February 1994.
The SC Third Division denied with finality Meralco’s motion for reconsideration, saying "it is the imperative duty of the State to interpose its protective power whenever too much profits become the priority of public utilities."
Senior Associate Justice Reynato Puno penned the decision and was concurred in by three other members of the five-member division.
In a telephone interview, Meralco president Jesus Francisco said that the power firm will go bankrupt if the SC decision will be enforced immediately.
"We do not have money to pay for it," he said, however assuring customers that they will continue to be served.
Francisco said they are relying on the assurance given by the executive branch that it will help keep Meralco viable.
When the SC handed down its refund order last Nov. 15, Energy Secretary Vincent Perez said the government will help maintain the financial viability of Meralco. Perez, who is currently in India, has yet to reaffirm the commitment.
At Malacañang, Presidential Spokesman Ignacio Bunye said that government will abide by the final decision of the Supreme Court.
He brushed aside overtures made earlier by Meralco officials that the country may yet suffer power outages because the amount was just too much.
While the beleaguered firm has yet to receive the order from the High Tribunal, Francisco said that they would not prefer to make speculative statements.
"We have to be very careful because we are publicly listed. Whatever we say can be interpreted by the Philippine Stock Exchange," he said.
In yesterday’s trading, Meralco A-shares, which are open to local investors, closed 1.19 percent lower at P8.30 while the B-shares, traded by foreign and local investors, fell 5.66 percent to P12.50. The main stock index closed 1.54 percent higher. — With reports from Artemio Dumlao, Donnabelle Gatdula, Katherine Adraneda, Delon Porcala