Meralco has new generation rate
The Energy Regulatory Commission (ERC), in an Order dated August 20, 2004, approves Manila Electric Company’s (MERALCO) application for rate adjustment in its generation charge. Meralco’s new generation cost will be adjusted by PhP0.1737 effective September 2004.
This is the third instance since the inception of the Generation Rate Adjustment Mechanism (GRAM) that Meralco applied for a revision in its generation cost.
The change in Meralco’s generation rate stemmed from the recovery in its carrying charges under the Deferred Accounting Adjustments (DAA). However, the adjustments in carrying charges were tempered by the downward generation cost based on the test period covering the months of February to May, 2004.
“Meralco is merely collecting from its customers the reasonable costs imposed upon it by its power suppliers. This does not give Meralco additional income. The GRAM is a recovery mechanism on the cost of power it purchased,” ERC Chairman Rodolfo B. Albano, Jr. explained. The viability and continued supply of safe, adequate and reliable, and quality electric service for the people is of the essence,” Chairman Albano, added.
DAA is a cost component in the generation rate intended to recover or refund generation costs incurred during the test period.
August 25, 2004