• Meralco seeks ERC nod for interim rate cut

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    MANILA Electric Co. (Meralco), the country’s largest power distributor, is seeking the approval of the Energy Regulatory Commission’s (ERC) to implement lower interim rates for distribution, supply, and metering.

    Based on Meralco’s petition with the ERC, the company plans to implement an interim average rate across all customer classes of P1.38 per kilowatt hour (kWh), which would represent a 10.4 percent reduction from its current charges.

    Meralco recently announced two consecutive months of power rate cuts totaling P1.28 per kWh for a 200 kWh-customer.

    According to Meralco, the distribution-related components of the electric bill have not changed since July 2014 and are lower than the rate in the same period last year.

    The company said that altogether, the overall distribution charge accounts for only 17 percent of the average customer bill. The rest are pass-through charges.

    Meralco clarified that it will be undergoing a reset process for the 4th regulatory period (4th RP) under the performance-based regulation (PBR) rate-setting methodology.

    “Pending the issuance of applicable rules that would govern the 4th RP reset filing, it will be implementing an Interim Rate, effective upon approval by the regulator,” said Meralco.

    Meralco said the 10.4 percent reduction is the result of the removal of the 2nd RP under-recovery-component, which formed part of the average distribution prices approved by the ERC in Meralco’s final determination for the 3rd RP.

    The proposed 10.4 percent reduction will be uniformly applied across all customer classes of Meralco.

    This translates to the following reductions in the total bill of residential customers at varying consumption levels: P52 for 200 kWh; P89 for 300 kWh; P134 for 400 kWh; and P 201 for 500 kWh.

    Meralco said it sought a provisional approval from the ERC so that it can immediately apply the lower charges to its customers.

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