ERC vows careful review of Meralco rate hike application

ERC Chairman Manuel R. Sanchez assured the public “that the Commission will carefully review the application of Meralco for a 13.58 centavo increase in its charges to consumers.”

Sanchez issued this statement in the light of Meralco’s recent petition filed with ERC for a 2.3% increase over its present overall average rate of P5.9893/kWh.

The ERC Chief said that “there is no cause for alarm among consumers."

“A series of public hearings have yet to be conducted to provide sufficient basis for the evaluation of the rate hike petition and guarantee its fair handling. We will come up with a just and reasonable decision once we have evaluated all the facts presented before the Commission,” he added.

“We urge consumer group representatives and other interested parties to participate in the forthcoming public hearings to make it easier for us to decide,” Sanchez further said.

ERC has been mandated by the Electric Power Industry Reform Act (EPIRA) to regulate the rates and charges to be imposed by Distribution Utilities (DUs) on their captive market.

In deciding the rate cases, ERC ensures that only expenses which are just and reasonable are included in the revenue calculation. However, the Commission does not lose sight of the fact that a utility is entitled to a fair return on their investment.

October 14 , 2003