Rate base audit slated, says ERC
‘We were initially targeting to complete the reset within the year but intervenors filed motions we need to resolve before proceeding’
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‘We were initially targeting to complete the reset within the year but intervenors filed motions we need to resolve before proceeding’
The Energy Regulatory Commission suggested a revision of the formula for the computation of electricity rates amid the price shocks during the peak of the recent dry season.
ERC chairperson Monalisa Dimalanta acknowledged that rates haven’t been reassessed or rebased since 2011.
However, she said the ERC is actively exploring ways to address regulatory barriers to initiate a much-needed reevaluation.
“We are undertaking the reset exercise now, which includes an assessment of its performance,” Dimalanta said.
“We were initially targeting to complete the reset within the year but intervenors filed motions we need to resolve before proceeding. The reset involves an audit of assets, revenues, expenses, and performance,” she added.
Under a regulatory review, the commission evaluates Meralco’s performance and adjusts electricity rates as needed.
Consult consumers
A consumer group is seeking to prioritize the consumers’ sentiments on electricity services as basis for any utility firm’s bid for a franchise to provide services.
United Filipino Consumers and Commuters (UFCC) on Monday lamented petitions for a new franchise amid increasing electricity rates as a result of higher demand.
“(Congressmen) probably forgot that it is proper to ask consumers if they are happy with the service provided by utility firms. It seems that they are not looking at a democratic consultation for the public for us to have a real voice and representation,” UFCC president Rodolfo Javellana Jr. said.
“For the UFCC, it is important for consumers to have a say in the matter,” he added.
Lawmakers should first evaluate performance through records available at the Energy Regulatory Commission.
“On the part of the Energy Regulatory Commission (ERC), did it conduct a so-called thorough performance audit? When we do a thorough audit, this will determine whether charges were excessive,” he added.
Albay representative Joey Salceda filed House Bill 9793 to extend the Meralco franchise for another 25 years, which would expire in 2028.
Another bill filed by House Committee on Energy chairman Lord Allan Velasco also aims to grant a 25-year extension to the power company’s franchise.
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