Meralco: Electricity demand picking up in franchise area

By Lenie Lectura June 30, 2020

https://businessmirror.com.ph/2020/06/30/meralco-electricity-demand-picking-up-in-franchise-area/

Electricity demand in the franchise area of the Manila Electric Co. (Meralco) during the second quarter peaked at 7,000 megawatts (MW), slightly lower than what the utility firm recorded in the first quarter of the year.

“Meralco peak demand during the first quarter was around 7,600 MW, which occurred before ECQ [enhanced community quarantine]. During the second quarter, Meralco peak demand was around 7,000MW, which was reached last June 23,” Lawrence Fernandez, Meralco utility economics head, said during a virtual press briefing on Monday.

While demand is slowly picking up, the numbers are still far from pre-lockdown levels, he added.

“While this is higher than the 5,500 MW peak in April, at the height of the ECQ, demand is still lower than pre-ECQ levels,” said Fernandez.

On electricity bills, the utility firm said it would not issue a disconnection notice to any of its more than six million customers until the end of August. This is because Meralco claims that meter reading activities have already resumed.

“Lahat nabasahan na [all meters have been read],” said Meralco Spokesman Joe Zaldarriaga, referring to recently-concluded electric meter reading conducted by Meralco personnel. “At present, we already completed our meter readings so by the end of June, all our bills are now based on actual meter readings.”

Zaldarriaga said there is also a possibility that Meralco may opt not to issue a disconnection notice at end-August. “There is no final decision yet. We will discuss it further.”

Despite providing an installment payment option to its customers for as long as six months, Meralco still receives complaints related to bill shock and confusing billing statements, among others.

“Our current situation now is that we handle concerns of customers individually. We will address and we will continue engaging all of our customers one-on-one. It is definitely challenging but we understand also that there are still questions,” said Zaldarriaga.

Meralco said it is in compliance with the Energy Regulatory Commission’s (ERC) directive. The ERC has ordered distribution utilities (DUs) to implement a staggered payment of up to six equal monthly installments for consumers with monthly consumption of 200 kWh and below in February for electricity bills falling due within the ECQ and Modified Enhanced Community Quarantine (MECQ) periods. The first monthly amortization should be made not earlier than June 15, without penalties, interests and other fees.

For electricity customers with monthly consumption of above 200 kWh in February, DUs shall allow a staggered payment of up to four equal monthly installments for their electricity bills falling due within the ECQ and MECQ periods. The first monthly amortization should be made not earlier than June 15, without penalties, interest and other fees.

“If needed, we night further push more in terms of duration period by which customers can pay their bills,” said Zaldarriaga.

Meralco considers extending ban on disconnection, puts notices on hold

June 30, 2020 | 12:07 am

https://www.bworldonline.com/meralco-considers-extending-ban-on-disconnection-puts-notices-on-hold/

MANILA Electric Co. (Meralco) is discussing if it will extend the moratorium in serving disconnection notices to customers who still cannot settle any portion of their unpaid bills, especially before the quarantine period.

In a press briefing on Monday, the Philippines’ biggest distribution utility said it would not issue any disconnection order until end-August.

“We will not issue any order or disconnection [notice] until the end of August. Walang galawan muna ‘yan, (There will be no disconnection activities yet)” said Lawrence S. Fernandez, Meralco head of utility economics.

But Joe R. Zaldarriaga, the company’s spokesperson, said: “Maaari pang magbago ‘yan.” (It still might change.)

The distribution utility has refrained itself from conducting disconnection activities as consumers are still grappling with the impact of the coronavirus disease 2019 (COVID-19) pandemic on their livelihoods.

It was further stated that Meralco has yet to determine who among customers are slated for disconnection.

Agnes R. Macob, Meralco head of commercial operations, said the company was deliberating the parameters which will be the basis for disconnecting a customer from the distribution line.

“But we are assuring you that Meralco will be very, very considerate during this pandemic period,” she added.

“Disconnection is farthest from the mission that we have right now which is to provide 24/7 electricity service,” Mr. Zaldarriaga said.

Ms. Macob appealed to customers who have not yet paid their bills prior to the strict lockdown period in mid-March to settle those accounts around this time that disconnection activities are still suspended.

Meralco is still finishing its actual meter readings, complying with the order of the Energy Regulatory Commission (ERC) after its previous estimated computation of customers’ bills during the quarantine months has elicited complaints.

It reiterated that the present June bills reflect the accrued consumption of customers from March to June based on actual readings.

Customers who have yet to pay their bills in the past three months from June were advised that they can settle those in portions in the next four or six months, as per the ERC directive.

They will then receive two bills each month: one for the installment payment and the other for the monthly bill.

Still pressed with complaints, Mr. Zaldarriaga said: “Sa sitwasyon ngayon, ang ginagawa namin ay hina-handle namin isa-isa lahat ng mga customers’ concerns sa kanilang individual electricity bills.” (Right now, we are resolving customers’ concerns on their individual electricity bills one-by-one.)

“We vow to continue engaging our customers one-on-one,” he added.

As of present, the listed utility collected below half of all full payments of its 6.9 million customers. Despite the low collection efficiency, Meralco is paying its suppliers in full, according to Mr. Fernandez.

Meanwhile, Meralco said it has yet to submit its response to the ERC ‘s show-cause order after it was found to have allegedly violated some of regulator’s advisories during the lockdown period.

Specifically, the regulator pointed out the alleged breach on its order on estimated billing, the implementation of the former staggered payment scheme, and the start of bills payments on May 30 for customers in areas under strict lockdown.

“We believe that we have complied with the existing regulations and directives set by the regulator and we will explain in full to the Commission the basis for our actions and compliance,” Jose Ronald V. Valles, Meralco’s first vice-president and head of regulatory management, earlier said.

Meralco’s controlling stakeholder, Beacon Electric Asset Holdings, Inc., is partly owned by PLDT Inc. Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has interest in BusinessWorld through the Philippine Star Group, which it controls. — Adam J. Ang

AC Energy, partner raise bid for Australia’s Infigen

Danessa Rivera (The Philippine Star) - June 30, 2020 - 12:00am

https://www.philstar.com/business/2020/06/30/2024441/ac-energy-partner-raise-bid-australias-infigen

MANILA, Philippines — AC Energy Inc. and its partner have upped their bid to take over a listed Australian clean energy developer, challenging another offer made by a competitor.

AC Energy’s affiliate UAC Energy Holdings Pty Ltd. submitted yesterday a supplementary bidder’s statement with the Australian Securities and Investments Commission, announcing that it is increasing its offer price from A$0.80 per stapled security to A$0.86 to take over Infigen Energy Limited.

UAC Energy also said the offer is now wholly unconditional, and that it would accelerate payment terms to 10 business days.

It has also stated that it would procure the provision of an unsecured loan to Infigen on arm’s length terms to refinance its corporate facility if required.

The changes in UAC Energy’s offer were made to address each of the four reasons raised by Infigen’s directors, namely another firm offered a higher take over price, highly prescriptive conditions, the offer is subject to defeating conditions, and uncertainty whether it has sufficient funding.

Infigen previously received an offer from Iberdrola Renewables Australia Pty Ltd., a unit of Spanish wind power producer Iberdrola S.A., at A$0.86 per security.

“Given this, the improved UAC offer is at a compelling price equal to the level at which the Infigen board endorsed a competitor’s bid, unconditional, does not have a minimum acceptance condition, and allows security holders to accept the offer for all or part of their stapled securities,” UAC Energy said.

However, Iberdrola also raised its takeover bid to A$0.89 per security.

Given the offers made by UAC Energy and Iberdrola, the Infigen board advised its shareholders to take no action on both offers.

“Both the UAC offer and the Iberdrola offer will remain open for some time,” it said, noting the UAC Energy offer is open until July 24 while the Iberdrola offer will remain open until July 30.

Infigen is a renewable energy developer, generator and retailer listed in the ASX that owns and operates 670 megawatts (MW) of wind farms all over Australia, as well as gas, battery and contracted assets.

UAC is owned by AC Energy and UPCAC Renewables Australia.

UPCAC, in turn, is an Australian joint venture of AC Energy with the UPC Renewables Group which has been active in renewable energy development in Australia since 2017, focusing on large-scale solar, wind and pumped hydro storage.

The acquisition of interest in Infigen strengthens both AC Energy’s and UPCAC’s commitment to provide low-cost power in Australia by expanding its operating portfolio and enabling the sale of energy through retail channels.