ERC OKs 17-centavo cut in Meralco rates

The Energy Regulatory Commission (ERC) gave the Manila Electric Company (Meralco) a provisional approval to lower its distribution charges by 17 centavos per kilowatt hour (kWh).

”The ERC granted on July 10, 2015 (Friday), the Meralco’s prayer for provisional authority to implement lower distribution, supply and metering charges,” the regulatory body said in a statement last Friday.

The ERC said the 17 centavos per kWh reduction is 11.26 percent of the current average rate of Meralco at P1.56 that expired last June.

The billing item, distribution charge, consists of the plain distribution charge, supply charge and metering charges.

For the distribution charge, the new rate is 1.01 per kWh, supply charge is 22 centavos per kWh and metering charge is 14 centavos per kWh.

Thus, the total updated Meralco distribution charge amounts to Php 1.38 per kWh.

The ERC orders the new rates are applied to the July billings.

Meralco initially applied for a Php 1.39/kWh rate, but the ERC added a reduction of P .013 per kWh to remove the allowance for net efficiency that was charged due to the former rates.

The ERC said it ensured Meralco would not overcollect from its customers.

ERC Chairperson Zenaida Ducut said the lower distribution charge “will surely mitigate possible in- creases in the other components of Meralco’s rates.”

She cited the new rate would tame the high power bills last month, which occurred due to the tight supply and the Malampaya’s gas supply restrictions.

Last year, the ERC also approved a lower distribution charge from P1.65 per kWh to P1.56 per kWh that was also petitioned by Meralco.