By Donnabelle Gatdula (The Philippine Star) Updated September 23, 2010 12:00 AM Comments (3)  |
MANILA, Philippines - The Manila Electric Co. (Meralco) will increase electricity rates by 3.14 centavos per kilowatt-hour (kwh) next month.
The increase was an offshoot of the decision of the Energy Regulatory Commission (ERC) that allowed Meralco to recover from its customers P3.371 billion for additional generation costs covering the period August 2006 to May 2007.
In a 23-page decision, ERC said 3.14 centavos will be collected from Meralco customers starting October 2010 until the full P3.371 billion (which includes interest) shall have been recouped.
ERC’s decision was in response to Meralco’s motion filed on Sept. 18, 2008 asking the regulator to reconsider its decision dated June 4, 2008 disallowing a portion of the generation costs it incurred for the supply months of December 2006 to May 2007 in the total amount of P2.7 billion.
In the petition, Meralco said its purchases from the wholesale electricity spot market are in compliance with the Electric Power Industry Reform Act of 2001 and requiring the firm to limit its energy purchases from the WESM to exactly 10 percent of its total demand, “would be impossible and would defeat objectives of the WESM.” WESM was established in 2006 and acts as trading floor of electricity.
Meralco said the disallowed P2.7 billion, representing part of Meralco’s generation cost for WESM purchases in excess of the mandatory 10 percent requirement, are pass on charges and the disallowance would undermine its viability as a distribution utility (DU).
In its decision, ERC said it found merit in Meralco’s claim.
The increase was an offshoot of the decision of the Energy Regulatory Commission (ERC) that allowed Meralco to recover from its customers P3.371 billion for additional generation costs covering the period August 2006 to May 2007.
In a 23-page decision, ERC said 3.14 centavos will be collected from Meralco customers starting October 2010 until the full P3.371 billion (which includes interest) shall have been recouped.
ERC’s decision was in response to Meralco’s motion filed on Sept. 18, 2008 asking the regulator to reconsider its decision dated June 4, 2008 disallowing a portion of the generation costs it incurred for the supply months of December 2006 to May 2007 in the total amount of P2.7 billion.
In the petition, Meralco said its purchases from the wholesale electricity spot market are in compliance with the Electric Power Industry Reform Act of 2001 and requiring the firm to limit its energy purchases from the WESM to exactly 10 percent of its total demand, “would be impossible and would defeat objectives of the WESM.” WESM was established in 2006 and acts as trading floor of electricity.
Meralco said the disallowed P2.7 billion, representing part of Meralco’s generation cost for WESM purchases in excess of the mandatory 10 percent requirement, are pass on charges and the disallowance would undermine its viability as a distribution utility (DU).
In its decision, ERC said it found merit in Meralco’s claim.
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