MERALCO rate hike petition will not impact in summer - ERC
The Energy Regulatory Commission (ERC) clarified that the Manila Electric Company’s (MERALCO) application for the approval of the translation into distribution rates for the Second Regulatory Year under the Performance Based Regulation (PBR) filed last 01 April 2008 (docketed as ERC Case No. 2008-018 RC) will still undergo due process, which include the conduct of public hearings, before any decision is made.
“The application filed by MERALCO will not impact yet on the existing electricity rates in the next two (2) months or longer as hearings and comprehensive evaluation are still to be undertaken prior to ERC’s issuance of provisional approval, if warranted,” ERC Chairman and CEO Rodolfo B. Albano, Jr. said.
MERALCO’s application is based on the ERC-approved maximum average price (MAP) under the PBR methodology, The MAP is comprised of historical electricity distribution rates and the expenditure forecasts of the distribution utility (DU) approved by the ERC to be included in the DU’s allowed annual revenue. The ERC approved the amounts of PhP1.167/kWh and PhP1.260/kWh for the years 2008 and 2009, respectively as MERALCO’s MAP. The translation of the said approved MAP into distribution rates is now the subject of MERALCO’s new application. The proposed distribution rates will be applicable for the Second Regulatory Period commencing on 01 July 2008.
Apart from MERALCO, Dagupan Electric Corporation (DECORP) and Cagayan Electric Power and Light Co., Inc. (CEPALCO) similarly filed the same application for the translation of the approved MAP into distribution rates last 31 March 2008. MERALCO, DECORP, and CEPALCO are the first DU-entrants to the PBR regime.
“The
proposed new rates of MERALCO will not be implemented until and unless it is
established that long-term consumer interests are protected and promoted,”
Chairman Albano concluded.
April 9, 2008