The Commission on Audit has begun its rate audit of the
Manila Electric Company (Meralco) following an Energy Regulatory Commission (ERC)
Order and pursuant to an earlier Supreme Court (SC) decision.
The rate audit is conducted pursuant to the SC decision in Meralco vs. Genaro
Lualhati, et. al dated December 6, 2006 and the ERC Order dated September 3,
2008 to determine whether the distribution rates charged by Meralco generated a
reasonable return using the Return on Rate Base (RORB) Methodology.
It will cover test years 2004 and 2007.
Meralco had initially expressed reservation with the audit but, through its
Regulatory Management Head Monico V. Jacob, later agreed to the audit after
determining its scope.
