ERC approves expanded MERALCO TOU scheme
The Energy Regulatory Comminsion (ERC) approved on 14 December 2009 the expanded Time-of-use (TOu) scheme of the Manila Electric Company (MERALCO). It gives more consumers the option to pay less for electricity consumed by merely shifting their power usage to off-peak hours.
.To widen the number of consumers that will benefit under the TOU scheme, the ERC decided to approve the request of MERALCO to lower the threshold from 750KW to 5KW for industrial/commercial customers and from 2,000 KWh to 500kWh monthly consumption for residential customers. Lowering the threshold will not in any way benefit MERALCO but will instead benefit the consumers and will support the objective of implementing the TOU program to the fullest.
“Under this modified TOU scheme, customers shall experience price differentiation between peak and off-peak and their electricity costs will depend on their particular demand curve. Higher peak price discourages consumption while lower off-peak price encourages consumption. Ultimately, consumers shall enjoy the benefit of lower electricity prices if they could shift consumption to off-peak periods,” ERC Chairperson Zenaida G. Cruz- Ducut exclaimed.
In its Decision, the ERC authorized MERALCO to charge the following peak and off-peak TOU rates, viz:
Jan. to June (P) |
Jul. to Dec. (P) |
|
| Weekdays (Monday to Saturday) | ||
Peak Rate |
6.4852 |
6.1053 |
Off-Peak Rate |
3.0925 |
3.0925 |
| Weekend (Sunday) | ||
Peak Rate |
6.4852 |
6.1053 |
Off-Peak Rate |
3.0925 |
3.0925 |
Peak hours during weekdays are from 8:01 A.M. until 9:00 P.M. and from 6:01P.M. to 8:00 P.M. during Sundays. Electricity consumers will thus enjoy off-peak rates for 11 hours during weekdays and 22 hours during Sundays.
The shifting to TOU scheme will, however, entail installation costs. The ERC thus allowed MERALCO to collect the following additional charges from customers who will choose to be billed under the TOU scheme:
Residential |
General Power |
||
1-Phase |
3-Phase |
3-Phase |
|
Application Fee (one-time) |
P2,720.00 |
P3,890.00 |
P24,640.00 |
Additional Monthly Charges |
|||
Metering Charge |
P117.20 |
P175.63 |
P1,247.99 |
Supply Charge |
P0.0109 |
P0.0109 |
P18.04 |
The ERC requires MERALCO to submit on an annual basis supporting information and calculation on the incremental supply and metering charges for the verification of the ERC.
“MERALCO’s TOU scheme is voluntary. The ERC, however, encourages qualified encourages electricity consumers to seriously consider availing the TOU scheme as it is a way to lower their electricity bill. The TOU scheme also maximizes the usage of generating plant capacities which will eventually spare consumers from bearing the cost of constructing new plants when existing capacities can no longer meet power demands,” ERC Chairperson Zenaida G. Cruz-Ducut concluded.
December 23 , 2009
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