ERC likely to greenlight Meralco rate relief plan
To mitigate the impact of rising costs on consumers, Meralco is proposing the earlier implementation of adjustments under its ERC-approved Power Supply Agreements.
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To mitigate the impact of rising costs on consumers, Meralco is proposing the earlier implementation of adjustments under its ERC-approved Power Supply Agreements.
The Energy Regulatory Commission (ERC) is expected to approve the measures proposed by Manila Electric Co. (Meralco) that could significantly reduce the projected increase in electricity rates for consumers in May amid rising global fuel prices and power supply pressures.
Based on Meralco’s submission to the Commission, generation charges were initially projected to increase by around P1.0277 per kilowatt-hour (kWh).
Higher projected costs from elevated global fuel costs
The utility attributed the higher projected costs to rising electricity supply prices, elevated global fuel costs, and the weakening Philippine peso against the United States dollar resulting from tensions in the Middle East.
To mitigate the impact on consumers, Meralco proposed the earlier implementation of adjustments under its ERC-approved Power Supply Agreements.
The mechanism would allow certain cost adjustments from power suppliers to be reflected immediately, potentially reducing the projected increase in generation charges from P1.0277/kWh to around P0.4350/kWh.
The ERC said it acknowledged the proposal and raised no objection. However, the regulator still needs to verify and review the proposal and may require additional supporting documents and reportorial submissions.
Identification of measures that can help reduce impact
“We understand the burden that rising electricity prices bring to Filipino households, especially during periods of global uncertainty and increasing fuel costs. The ERC continues to work closely with distribution utilities and other industry stakeholders to identify measures that can help reduce the impact on consumers,” ERC chairperson and CEO Atty. Francis Saturnino C. Juan said Wednesday.
