No rate hike this month, Meralco says

Business Mirror

08 Jan 2014 

 

Written by PNA

POWER retailer Manila Electric Co. (Meralco) on Tuesday discounted any rate hike this month.

In an interview with PNA, Meralco spokesman Joe R. Zaldarriaga said the company is not allowed to implement any rate increases this month based on the 60-day temporary restraining order (TRO) issued by the Supreme Court (SC) on December 23.

The TRO was issued after several lawmakers and consumer groups questioned the record-high P4.15 per kilowatt-hour (kWh) hike in transmission charges to be collected by the utility firm.

The power distribution company was scheduled to collect in three tranches the higher transmission charges in December 2013 and in February and March this year.

The higher transmission charges were the result of the one-month scheduled maintenance shutdown of the Malampaya power plant from November 11 to December 10, 2013, and the unscheduled shutdown of some power plants.

News of the possibility of another rate hike this month or the next came out as a result of the reported supply restrictions from the Malampaya gas field since last weekend due to “clogging problems” at its gas field production wells.

This incident lowered supply received by power plants from where Meralco sources its capacity.

However, Zaldarriaga said it is still too early to determine the impact of an upward price adjustment.

“We would like to inform and advise our customers that in deference to the SC order, we will maintain the rates which have been temporarily pegged at P5.67 per kWh for the generation charge,” he added.   source