Business World Online
Posted on September 15, 2013 11:28:10 PM
By Claire-Ann C. Feliciano, ReporterMANILA ELECTRIC CO. (Meralco) wants to recover over P5 billion from six generation firms for line loss overpayments that will in turn be refunded to consumers.
In a petition dated Aug. 27, the utility asked the Energy Regulatory Commission (ERC) to order the refund of P5,421,831,326.63 in total.
Broken down, Meralco wants:
• P2.148 billion from South Premiere Power Corp., the operator of the 1,200-megawatt (MW) Ilijan natural gas power plant in Batangas, which used to provide power for the distributor’s customer choice program and economic zone customers;
• P964.705 million from Masinloc Power Partners Co. Ltd., owner of the 600-MW Masinloc coal-fired power plant in Zambales;
• P534.47 million from AP Renewables, Inc., owner of the 458-MW Makban geothermal power plant straddling Batangas and Laguna;
• P1.138 billion from Therma Luzon, Inc., operator of the 700-MW Pagbilao coal plant in Quezon;
• P370.804 million from San Miguel Energy Corp., operator of the 1,000-MW Sual coal plant in Pangasinan; and
• P265.544 million from SEM-Calaca Power Corp., owner of the 600-MW Calaca coal-fired plant in Batangas.
Representatives of the six companies were not immediately available for comment.
Meralco also asked the ERC to approve its “proposal to correspondingly refund to its customers the aforementioned line loss amounts ... until such time that the said over-recoveries are fully refunded, by way of automatic deduction of the amount to refund to the computed monthly generation rate.”
The petition followed a July 1 ERC order where Meralco was directed to go after the “successor generating companies” that inherited power facilities previously owned by National Power Corp. (Napocor).
Meralco last October initially claimed a refund of P9.839 billion from Napocor, through the Power Sector Assets and Liabilities Management Corp. (PSALM), covering overpayments from July 2006 to August 2012.
“Double charging” was said to have occurred with the simultaneous implementation of Meralco’s transition supply contract with Napocor and the Wholesale Electricity Spot Market’s price determination methodology. Both charged the 2.98% line loss component that was passed on to consumers.
The ERC in March ordered PSALM -- the state firm mandated to manage and dispose of Napocor’s assets -- to pay P5.176 billion to Meralco. It also ruled that the balance of the claim “went to certain generation companies, which assumed part of Napocor’s supply contract with Meralco.”
The ERC subsequently asked Meralco to file a new plea with updated computations, hence the latest petition covering charges up to June 25, 2013.
Meralco, which distributes electricity to Metro Manila, Bulacan, Cavite and Rizal as well as parts of Batangas, Laguna, Quezon and Pampanga, saw its net income fall by 3.2% to P9.441 billion in the first half.
Its shares gained P1.60 or 0.59% to close at P275 apiece on Friday.
Beacon Electric Asset Holdings, Inc., which has the biggest stake in Meralco, is partly owned by Philippine Long Distance Telephone Co. (PLDT). Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a minority stake inBusinessWorld. source
Broken down, Meralco wants:
• P2.148 billion from South Premiere Power Corp., the operator of the 1,200-megawatt (MW) Ilijan natural gas power plant in Batangas, which used to provide power for the distributor’s customer choice program and economic zone customers;
• P964.705 million from Masinloc Power Partners Co. Ltd., owner of the 600-MW Masinloc coal-fired power plant in Zambales;
• P534.47 million from AP Renewables, Inc., owner of the 458-MW Makban geothermal power plant straddling Batangas and Laguna;
• P1.138 billion from Therma Luzon, Inc., operator of the 700-MW Pagbilao coal plant in Quezon;
• P370.804 million from San Miguel Energy Corp., operator of the 1,000-MW Sual coal plant in Pangasinan; and
• P265.544 million from SEM-Calaca Power Corp., owner of the 600-MW Calaca coal-fired plant in Batangas.
Representatives of the six companies were not immediately available for comment.
Meralco also asked the ERC to approve its “proposal to correspondingly refund to its customers the aforementioned line loss amounts ... until such time that the said over-recoveries are fully refunded, by way of automatic deduction of the amount to refund to the computed monthly generation rate.”
The petition followed a July 1 ERC order where Meralco was directed to go after the “successor generating companies” that inherited power facilities previously owned by National Power Corp. (Napocor).
Meralco last October initially claimed a refund of P9.839 billion from Napocor, through the Power Sector Assets and Liabilities Management Corp. (PSALM), covering overpayments from July 2006 to August 2012.
“Double charging” was said to have occurred with the simultaneous implementation of Meralco’s transition supply contract with Napocor and the Wholesale Electricity Spot Market’s price determination methodology. Both charged the 2.98% line loss component that was passed on to consumers.
The ERC in March ordered PSALM -- the state firm mandated to manage and dispose of Napocor’s assets -- to pay P5.176 billion to Meralco. It also ruled that the balance of the claim “went to certain generation companies, which assumed part of Napocor’s supply contract with Meralco.”
The ERC subsequently asked Meralco to file a new plea with updated computations, hence the latest petition covering charges up to June 25, 2013.
Meralco, which distributes electricity to Metro Manila, Bulacan, Cavite and Rizal as well as parts of Batangas, Laguna, Quezon and Pampanga, saw its net income fall by 3.2% to P9.441 billion in the first half.
Its shares gained P1.60 or 0.59% to close at P275 apiece on Friday.
Beacon Electric Asset Holdings, Inc., which has the biggest stake in Meralco, is partly owned by Philippine Long Distance Telephone Co. (PLDT). Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a minority stake inBusinessWorld. source
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