Business World Online
Posted on June 08, 2011 10:38:48 PM
FRESH POWER rate hikes may be in the offing as Manila Electric Co. (Meralco) -- which this month implemented a generation rate adjustment -- now wants to recover P2.87 billion in franchise taxes paid to local governments.
Consumers, however, can also take heart as regulators yesterday said they had approved maximum average prices lower than what the distribution utility wanted to implement over the next four years.
The Energy Regulatory Commission (ERC) said it would consider the franchise tax recovery petition and would also await Meralco’s "rate translation" of the approved 2012-2015 price caps.
The utility said it wanted to recover franchise taxes paid from 1993-2004 to the provinces of Bulacan, Batangas, Cavite, Laguna and Rizal, and the cities of San Jose del Monte, Batangas, San Pablo, Tagayatay, Lucena, Mandaluyong, Marikina, Quezon, Caloocan, Pasay, Las Piñas, Manila and Pasig.
The rate adjustments -- to be charged over a 12- to 36-month period -- will vary by area and the ERC said it had scheduled a June 22 public hearing on the issue.
"These increases will only be in each area specified if approved," ERC Executive Director Francis Saturnino C. Juan said in a telephone interview.
Meralco said it had previously applied for the recovery in 2001.
The ERC, meanwhile, said it had approved lower maximum average prices for the third regulatory period of P1.5828 per kilowatt-hour (kWh) starting next year, with the rate falling to P1.5817/kWh in 2015.
Meralco last year asked for maximum average prices of P1.7056/kWh for 2012, P1.7686/kWh for 2013, P1.8349/kWh for 2014, and P1.9036/kWh for 2015.
The ERC did not disclose the 2013 and 2014 caps for the maximum average price, which covers Meralco’s distribution and the supply charges. The regulator earlier projected ceilings of P1.5616/kWh for 2012, P1.48/kWh for 2013, P1.4027/kWh for 2014 and P1.329/kWh for 2015.
"The lower rates won’t start until the final rate translation is approved. Meralco can file its rate translation as early as next week," Mr. Juan said.
The ERC said it had disallowed some capital expenditures.
Meralco’s supply and distribution rates as of May 2011 were at P1.56/kWh, lower than the year’s P1.6464/kWh cap. -- ENJD
The Energy Regulatory Commission (ERC) said it would consider the franchise tax recovery petition and would also await Meralco’s "rate translation" of the approved 2012-2015 price caps.
The utility said it wanted to recover franchise taxes paid from 1993-2004 to the provinces of Bulacan, Batangas, Cavite, Laguna and Rizal, and the cities of San Jose del Monte, Batangas, San Pablo, Tagayatay, Lucena, Mandaluyong, Marikina, Quezon, Caloocan, Pasay, Las Piñas, Manila and Pasig.
The rate adjustments -- to be charged over a 12- to 36-month period -- will vary by area and the ERC said it had scheduled a June 22 public hearing on the issue.
"These increases will only be in each area specified if approved," ERC Executive Director Francis Saturnino C. Juan said in a telephone interview.
Meralco said it had previously applied for the recovery in 2001.
The ERC, meanwhile, said it had approved lower maximum average prices for the third regulatory period of P1.5828 per kilowatt-hour (kWh) starting next year, with the rate falling to P1.5817/kWh in 2015.
Meralco last year asked for maximum average prices of P1.7056/kWh for 2012, P1.7686/kWh for 2013, P1.8349/kWh for 2014, and P1.9036/kWh for 2015.
The ERC did not disclose the 2013 and 2014 caps for the maximum average price, which covers Meralco’s distribution and the supply charges. The regulator earlier projected ceilings of P1.5616/kWh for 2012, P1.48/kWh for 2013, P1.4027/kWh for 2014 and P1.329/kWh for 2015.
"The lower rates won’t start until the final rate translation is approved. Meralco can file its rate translation as early as next week," Mr. Juan said.
The ERC said it had disallowed some capital expenditures.
Meralco’s supply and distribution rates as of May 2011 were at P1.56/kWh, lower than the year’s P1.6464/kWh cap. -- ENJD
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