Meralco customers spared for now

Business World Online
Posted on August 21, 2014 10:10:00 PM
By Claire-Ann M. C. Feliciano, Senior Reporter

CUSTOMERS of Manila Electric Co. (Meralco) will be spared of P0.45 per kilowatt-hour (/kWh) in deferred generation charge for now as related cases could take till yearend to resolve, regulatory and company officials have said.

Meralco last March asked the Energy Regulatory Commission (ERC) for clearance to collect the amount on a staggered basis to cover the December cost it was unable to charge customers last January.

Ronald V. Valles, Meralco head for regulatory affairs, said in a phone interview last weekend that Meralco’s application “is still undergoing evaluation by the regulatory agency.”

The charge Meralco is seeking is significantly less than the P4.56/kWh the utility initially computed based on invoices from suppliers.

Mr. Valles explained that the amended charge was calculated in compliance with ERC’s order last March that voided the underlying Wholesale Electricity Spot Market (WESM) prices for both the November and December 2013 supply months.

On top of the P0.45/kWh pending with the ERC, another P4.15/kWh remains hanging over consumers’ heads -- covering the November supply month and which was to be collected in December -- since the Supreme Court slapped an indefinite restraining order on that earlier charge.

“ERC has suspended hearings on the case to await the motions for reconsideration related to the ERC order filed by generators,” Mr. Valles said.

“We hope the motions for reconsideration will be resolved within the year.”

Francis Saturnino C. Juan, ERC executive director, said he could not commit when the ERC could resolve Meralco’s case.

He explained that the regulatory body has to address all motions for reconsideration before proceeding to tackle Meralco’s petition since these are interconnected.

“There are quite a number of motions on ERC’s order to void the WESM prices,” he said.

OPPOSITION
In an e-mail, Mr. Juan identified the companies that have sought reconsideration of the regulatory order as: AP Renewables, Inc.; Therma Mobile, Inc.; Therma Luzon, Inc.; San Miguel Energy Corp.; Petron Corp.; Masinloc Power Partners Company Ltd.; 1590 Energy Corp.; Panasia Energy, Inc.; SEM-Calaca Power Corp.; TeaM Philippines Energy Corp.; Northwind Power Development Corp.; SN Aboitiz Power-Magat, Inc. and SN Aboitiz Power-Benguet, Inc.; as well as South Premier Power Corp., Strategic Power Development Corp., and SMC Powergen, Inc.

High WESM prices were blamed for Meralco’s record-high power rates for December and January billing periods.

Meralco’s controlling stakeholder, Beacon Electric Asset Holdings, Inc., 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 majority stake in BusinessWorld. source