Meralco realizes P100-M savings in H1

(The Philippine Star) Updated July 29, 2011 12:00 AM  MANILA, Philippines - Power utility giant Manila Electric Co. (Meralco) has reported savings of P100 million in the first semester of 2011, a complete reversal of the P100-million losses realized last year, the company said yesterday.  Meralco said the positive performance in the first semester was due mainly to fulfilled service commitments to its 4.9 million consumers. In contrast, the negative results last year was a direct result of nearly 800,000 in poor service or no-service actions. The savings were measured through the guaranteed service levels (GSL) provided under the performance-based rate mechanism. Customers are compensated if the distribution utility was unable to meet performance thresholds in duration and frequency of power interruptions, restoration time and connection time, thus resulting in losses for the utility firm. Meralco chief operating officer Oscar Reyes also told reporters that despite the weather disturbances, Meralco’s year-to-date performance reflected the company’s reliability performance. The average number of interruptions in 2011 experienced by customers improved 10 percent from the same period last year. Meralco also upgraded its distribution system with nine significant projects lined up for completion in the second half. These included the development of the New Calaba substation, expansion of the Diliman and Legazpi substations and commissioning of four new 115-kilovolts (kV) sub-transmission lines. It achieved a record level system loss of 7.48 percent during the six-month period while the regulatory cap was placed at 8.5 percent. “Our system loss achievement translates to a cumulative savings for our consumers of P2.9 billion or an equivalent P0.034 per kilowatthour from 2008-2010 when our actual system loss rates were below the Energy Regulatory Comission cap. All savings are passed on to consumers,” Reyes pointed out. Meralco, jointly owned by the Philippine Long Distance Telephone Co., First Philippine Holdings and San Miguel Corp., is the country’s biggest power distributor, serving almost 4.9 million customers in 29 cities and 82 municipalities.