Meralco regulatory affairs office head Monico V. Jacob told media that they will sit down with the ERC and COA "to discuss the parameters" of the audit.

Meralco had been emphatic about the fact that it shall only bow down to COA audit request if this would be asked directly by the ERC, adding that the focus shall also be limited to rate-related concerns.

"Since COA is saying that the audit is rate-related and is in connection with the Supreme Court ruling of 2006, then we are willing to comply and we welcome the audit," Jacob stressed.

The utility firm was first adamant about the audit request, noting that it will not adhere to it since the plea was made by the advocacy group National Association of Electricity Consumers for Reforms or NASECORE.

Later on, the ERC took the cudgels and has written Meralco president Jesus P. Francisco on the COA audit directive.

ERC Chairperson Zenaida G. Cruz-Ducut said the scrutiny of Meralco’s books, accounts and financial records will be based on COA’s request in compliance to the Supreme Court ruling on the utility firm’s rate unbundling case in 2006.

The COA also stated that the focus of the audit shall be for test periods covering calendar years 2004 and 2007.

Jacob reiterated that the company’s initial objection to the audit request was hinged on the fact that the parameters have not been set clear before.

He emphasized that if they just jumped at the "general audit"request made earlier, this should have caused troubles in legal processes and could have set a very dangerous "precedent" for all other private businesses.

"Had we agreed to the audit earlier, we would have been subjected to a general audit. But now, they have a definite scope of the audit and that’s why we have agreed to comply," Jacob added.

On ERC’s request that the COA audit team be provided space and that the utility firm must work with them on the required documents, Jacob has sounded off the company’s cooperation.

"We will provide COA with what they need for the conduct of the audit," he stressed.