ERC orders reduction of Meralco generation charges

Meralco customers will begin to enjoy a P0.2143/kWh reduction in generation rates starting with their February 2004 consumption until Meralco files another generation rate adjustment application. The present rate charged by Meralco is P3.4029/kWh.

Meralco earlier submitted an amended application to ERC for the recovery of the Independent Power Producer (IPP) costs under its Generation Rate Adjustment Mechanism (GRAM). The said distribution utility proposed a generation charge of P3.2041/kWh. The new rate approved by the Commission for this billing item is P3.1886/kWh.

The rate reduction was decided in a Commission meeting held on January 21, 2004. The Order regarding this matter is due for signing.

GRAM is an adjustment recovery mechanism which replaced the automatic recovery adjustment mechanism of the National Power Corporation (NPC), known as the Fuel and Purchased Power Cost Adjustment (FPCA) and the Purchased Power Adjustment (PPA) of distribution utilities.

January 26, 2004