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Consumer group to Meralco: Refund customers P84B in systems losses


MANILA, Philippines - The consumer group People Opposed to Warrantless Electricity Rates (POWER) on Wednesday urged the Manila Electric Co. (Meralco) to refund its customers the estimated P84.6 billion in systems loss charges that was paid to them from 2003 to 2007. POWER claimed that electricity consumers have paid some P84.6 billion for the systems losses of the Meralco since power rates were unbundled in 2003 and systems losses became apparent in the computations. According to the group, the systems loss charge is pegged at 70.55 centavos per kilowatt-hour (kwh). “If Meralco power sales from 2003 to 2007 is around 24 billion kwh a year, or 120 billion kwh in five years, that would mean customers have been paying P84.6 billion in systems losses," it said in a statement. POWER also noted that the government’s implementation of VAT starting 2006 enabled it to collect the “windfall revenues" in the amount of P3.46 billion, which they also want Meralco to reimburse to the public. POWER has been opposing schemes that subject systems losses to VAT, saying that systems losses should not be subjected to VAT since these do not form any part of electricity consumed and are in fact losses sustained by the distribution firm. Systems losses include electricity lost due to pilferage as well as technical losses incurred in the delivery of electricity. Consumers have argued that such losses should not be passed on to consumers because these do not form part of electricity they consumed. - GMANews.TV
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