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).
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 as results of the Middle East tensions.
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.
“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.
“While some costs are driven by international fuel prices and market conditions beyond domestic control, the ERC remains committed to ensuring that all charges passed on to consumers are properly reviewed, transparent, and reasonable. We will continue to pursue timely interventions that balance consumer protection, reliable electricity service, and energy security,” he added.
Juan said the ERC has tightened its monitoring and review of electricity rates amid recurring spikes in power costs, requiring distribution utilities facing substantial increases in generation charges to submit detailed reports and supporting documents for evaluation of possible mitigating measures.