Republic of the Philippines

ENERGY REGULATORY COMMISSION

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ERC Lowers Meralco's Distribution Charge

The  Energy   Regulatory  Commission  (ERC)  granted on  July   10, 2015   the   Manila   Electric   Company's (Meralco)  prayer  for  provisional authority  to implement lower    distribution,   supply,  and    metering charges, as follows:

Distribution Charge

1.0114/kWh

Supply  Charge

0.2251/kWh

Metering Charge

0.1444/kWh

Total

PhP1.3810/kWh


The said rates   are 11.26% or PhP 0.1752/kWh lower than   the current average rate of Meralco at PhP1.5562/kWh.

In its  application for  approval of the  interim average rate  of PhP1.3939/kWh,  Meralco   proposed  to   reduce    its   current  rate    by removing the  component therein  representing its  under-recoveries in the  distribution charge  for  the  Second  Regulatory Period  (July  2007  to June  2011).  The  ERC made  a further reduction of  PhP0.0129/kWh to remove the  allowance for  net  efficiency, which   was  embedded in  its rates   for  the  Third   Regulatory  Period  (July   2011 to  June  2015), and provisionally allowed the  implementation of the  interim average rate  of PhP1.3810/kWh,  subject  to   its  final   decision   after   the   hearings  are concluded. In  so  doing, the  ERC has  ensured that   Meralco   will   not over-collect  from   its  customers for  its  previous under-recoveries  and allowed net  efficiency adjustments, while  the  ERC determines what Meralco's   appropriate  rate   should   be  starting  the   July   2015   billing period.

"This is a welcome relief for Meralco's customers.  It will  surely mitigate  possible increases in  the  other  components of  Meralco's retail rates  occasioned by  the  tight supply condition and  Malampaya gas restrictions  that   were  experienced  last  month,"  outgoing  ERC Chairperson Zenaida  G. Cruz-Ducut said.

This development transpired as Chair Ducut bows out from   the ERC as  her  7-year term   ends.    It must  be  recalled that  the  ERC also approved last  year  for  the  entire 2015  a lower  transmission charge, in PhP/kWh   terms to  the  electricity  end-users, from   PhP0.6416/kWh  to PhP0.6161/kWh.

During Chair  Ducut's term, the  ERC was  able  to  create   a  new regulatory  framework  for   the   setting  of   the   electric  cooperatives wheeling rates.  The  system  loss caps  were  also lowered from  14%  for electric   cooperatives to  13%   and  9.5% for  private utilities to  8.5%. Company use was also excluded in the computation of the system loss. Likewise, New CAPEX Rules to aid the utilities in preparing their CAPEX proposals were promulgated. Planning manuals such as the Electric Cooperative Distribution Utilities Planning Manual and Investor-Owned Electric Distribution Utilities Planning Manuals were released.

It was also during her term that   Retail Competition and Open Access (RCOA) was declared, with its initial implementation commencing on June 26, 2013.   Prior  to  this,  the  ERC laid  down  the foundation  of   RCOA  by   promulgating  several   rules   and   regulations governing  the   retail  market.  Under   her   watch,  the   ERC  was   also successful in setting    up the regulatory framework for the implementation  of   the   incentive  mechanisms  under   the   Renewable Energy Act of 2008, such as the  Feed-in   Tariff   System and  the  Net Metering program.

As  her  final  word,  Chair  Ducut  thanked all  stakeholders, her colleagues   at    ERC,  and   the    entire   Energy    Family,  for    all   their cooperation, understanding, and  support. "We would not have accomplished anything without you," she concluded.

 

Today at ERC
Wednesday, July 6, 2022

Hearing Schedules
Time:
09:00
Case No.:
2021-094 RC [JU] [EX]
Applicant:
SURNECO
Venue:
Virtual Hearing: Platform - MS TEAMS
Title:
CAPEX
Time:
09:00
Case No.:
2022-010 CF [JU] [EX]
Applicant:
ZAMSURECO II
Venue:
Virtual Hearing: Platform - MS TEAMS
Title:
OUR
Time:
14:00
Case No.:
2022-003 CF [JU] [EX]
Applicant:
SULECO
Venue:
Virtual Hearing: Platform - MS TEAMS
Title:
OUR
Time:
14:00
Case No.:
2022-009 CF [JU] [EX]
Applicant:
MORESCO II
Venue:
Virtual Hearing: Platform - MS TEAMS
Title:
OUR
Time:
14:00
Case No.:
2022-013 MC [JU] [EX]
Applicant:
HEDCOR
Venue:
Virtual Hearing: Platform - MS TEAMS
Title:
PTP

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