ERC lowers Meralco's distribution charge

Consumers may expect lower electricity bills starting next month after the Energy Regulatory Commission (ERC) approved the reduction in distribution charge of the Manila Electric Company (Meralco).

 

“Dahil Maganda ang economic condition natin, mababa ang CPI (Consumer Price Index) na ginamit na pang-adjust, mababa tuloy ang naging singil kumpara noong nakaraang taon,” said ERC executive director Francis Juan in an interview aired on GMA News' “24 Oras” Thursday evening.

 

The ERC decision gives Meralco provisional authority to lower its distribution charge to P1.56 per kilowatt-hour (kwh) from the current P1. 65 per kwh starting July 1, 2014 to June 30, 2015.

 

Based on Meralco's socialized rate structure residential consumers will have the following distribution charge reduction in their electricity bills:

 

P0.14 – P0.17 for customers with monthly consumption of less than 200 kwh

P34 for customers with monthly consumption of 200 kwh

P51 for customers with monthly consumption of 300 kwh

P64 for customers with monthly consumption of 400 kwh

 

In a separate interview, Meralco spokesperson Joe Zaldarriaga said the distribution firm may also lower their generation charge starting sometime this month, though he said final calculations have yet to be made.

 

“There is a possibility of a downward adjustment (in generation charge) but of course that will also depend on the final figure once we get it,”Zaldarriaga said.

 

However, Meralco still has a pending petition to implement a P4.15/kwh power rate increase for its November to December 2013 billing. 

 

The petition is still under a temporary restraining order (TRO) by the Supreme Court (SC). Aside from the injunction, Meralco also has a pending petition before the ERC for P0.65/ kwh price increase to recover its losses in January of this year.

 

Juan said that based on the ERC calculation, even if SC would lift the TRO, Meralco should only charge consumers of P0.27/kwh for the December 2013 billing,

 

He also said that Meralco should give a refund of P0.73/kwh to consumers who have already paid an increased electricity rate in December 2013 before the TRO was issued.

 

Juan, however, said that this possible refund must still undergo a hearing with the ERC. -Elizabeth Marcelo/NB, GMA News