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By Euan Paulo C. Añonuevo, Reporter
ELECTRICITY bills are expected to
jack up in the coming months, after Manila Electric Co. (Meralco)
filed a series of petitions for an increase in its rates with the
Energy Regulatory Commission (ERC).
The country’s largest
distribution utility has filed 10 applications to recoup some P14
billion in under-recoveries incurred since September last year. Of
the total amount, P13 billion accounts for deferred generation
charge adjustments while P1 billion represent under-recoveries on
system loss charges incurred by the company.
“We have already filed our
applications with the ERC and we are just waiting for their
decision,” Ivanna G. de la Peña, Meralco vice president and head
of utility economics division, said.
She said it would up to the
regulatory body to determine the final rate adjustments, but these
cost recoveries would be tantamount to a series of upward
adjustments in Meralco’s generation charge on customers in the
coming months.
The under-recoveries that Meralco
is seeking to collect had accumulated after a Supreme Court ruling
in August last year, preventing the automatic pass on of cost
adjustments such as generation charges without undergoing public
consultations.
On June 26, Congress however amended the Electric Power Industry
Reform Act’s (EPIRA) implementing rules and regulations, resulting
in the resumption of automatic cost recoveries for these charges.
Jesus P. Francisco, Meralco
president, said that “the recovery period will be spread and it
could be stretched for 9 months, 12 months or 18 months depending on
the assessment of the ERC.”
On top of these petitions,
Meralco has yet to file other applications for the remaining P8
billion in under-recoveries for transmission charges and lifeline
subsidy rates.
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