Utility giant Manila Electric Company (Meralco) has given word that it will contest cost over-recoveries rap set out by the Commission on Audit (CoA) in the scrutiny of its books in its report that was submitted to the Energy Regulatory Commission (ERC) as recommendatory document that may be considered in rendering final ruling on the utility firm’s unbundled tariffs.

No less than Meralco chairman and chief executive officer Manuel M. Lopez indicated that “we will not hesitate to challenge any judgment and speculations on overcharging, which may raise undue public expectation of a refund.”

He added that the company always “exercised prudence with respect to incurrence of costs and capital expenditures and have worked within ERC-approved budgets.”

Meralco first vice president and treasurer Rafael L. Andrada explained that the questioned parking lot in the CoA report, for instance, is a necessary asset since this is intended for the service vehicles of the company, which in turn are necessary to address needs for efficient service.

From the time the ERC solicited comments for the pending Meralco case, it was noted that only one intervenor has so far made its filing.

Meralco already dispelled reports that it overcharged its customers by up to P7 billion, setting on record that all the disallowances directed by the ERC on its unbundled rates have not been passed on to ratepayers.

On the sphere of economic regulation, it is the ERC that has been imbued with the expertise to evaluate what are prudently-incurred costs that must be incorporated in setting the rates of power utilities.

The State audit report came forth as compliance to a Supreme Court ruling, and its findings will serve as recommendations that the ERC may consider in rendering the final ruling on Meralco’s unbundled rates.