MANILA - The country's largest power utility Meralco is implementing a refund next month after the Energy Regulatory Commission ordered it to return a part of the hefty rate adjustment this February.
 
The rate hike for this month is P0.57/kwh, a large portion of which is derived from the increase in fuel cost, specifically natural gas.
 
Meralco earlier sought guidance from the ERC on how to deal with the increase in the price of natural gas from one of its biggest suppliers, First Gen.
 
But ERC Chairperson Monalisa Dimalanta said Meralco should not have passed on to all consumers yet the considerable increase due to higher natural gas prices from the Malampaya consortium if it has not yet validated if the hike is justified.

• Meralco to raise power rates in February

Meralco, in its letter to the ERC, has admitted that it does not have a copy of the new gas supply and purchase agreement between the Malampaya Consortium and First Gen.
 
Dimalanta reiterated that it was premature for Meralco to pass on the fuel costs to consumers if it has not yet validated the amount.

• Meralco sees power rates rising slightly in January

REFUND PROCESS
 
Meralco said it would abide by the suggestion of Dimalanta to refund consumers but the company still needs to compute how much of the P0.57/kwh will have to be refunded.
 
Meralco Spokesman Joe Zaldarriaga said the company will implement the refund next billing cycle in compliance with Dimalanta's letter.
 
NATURAL GAS 

• Meralco dropping power rates in December

A consumer group earlier warned that natural gas prices are likely to further go up in the next months exposing consumers to higher electricity prices.
 
More than 40 percent of Meralco's supply comes from natural gas plants running on indigenous natgas from Nalampaya or imported liquified natural gas.
 
Zaldarriaga said Meralco's supply will be insufficient without the natural gas plants.