More Meralco customers to enjoy off-peak rates

Starting Jan. 1, more customers of Manila Electric Co. (Meralco) may avail themselves of lower rates during off-peak hours, after the Energy Regulatory Commission (ERC) cut minimum consumption requirements of those who can participate in the voluntary scheme. In a statement on Wednesday, the ERC said it approved last Dec. 14 the lower consumption threshold for the time-of-use scheme of the National Power Corp. Meralco uses the scheme, which allows customers to pay less for electricity consumed during off-peak hours, or from night to dawn when general demand is at its lowest. Peak hours are from 8:01 a.m. to 9 p.m. from Monday to Saturday, and from 6:01 a.m.to 8 p.m. on Sunday. Hence, qualified consumers can avail themselves of off-peak rates for 11 hours from Monday to Saturday and for 22 hours on Sunday. "Ultimately, consumers [will] enjoy the benefit of lower electricity prices if they could shift consumption to off-peak periods," ERC Chairman Zenaida G. Cruz-Ducut said. Meralco customers in industrial and commercial sectors who have a peak demand of five kilowatts (KW) per hour — about 3,600 kilowatt-hours (kWh) a month — may participate in the scheme. The minimum used to be 750 KW per hour, or 3.78 million kWh a month. The ERC likewise cut the threshold for residential customers to 500 kWh from 2,000 kWh per month. Ivanna G. dela Peña, Meralco vice-president and utility economics head, said the ERC ruling would benefit not just the usual malls and factories but also small and medium enterprises such as restaurants. "We’re glad that the ERC has granted our petition to lower the time-of-use requirement. Now, more customers could avail [themselves] of this [scheme]," she said in a phone interview. "The ERC... encourages qualified electricity consumers to seriously consider availing [themselves] of the time-of-use scheme since it is a way to lower their electricity bill," Ducut said. The scheme, she said, also maximizes the use of generation plants' capacities. The peak rate from January to June was P6.4852 per kWh, compared with P6.1053/kWh from July to December, while the off-peak rate was steady at P3.0925/kWh. Qualified customers who will avail themselves of the scheme must pay an application fee of P2,720 for residential users and P24,640 for commercial and industrial customers. — Jose Bimbo F. Santos, BusinessWorld