ERC okays P15.5-B Meralco 2016 capex

Dominant power distributor Manila Electric Co. (Meralco) has obtained Energy Regulatory Commission (ERC) approval for its P15.5 billion capital expenditures for this year, the company reported to the Securities & Exchange Commission (SEC).

The approved major capital expenditures, however, did not include Meralco’s expected spendings to relocate facilities that will be affected by projects listed under the government’s Private Public Partnership (PPP) program.
Meralco had pending petitions with the ERC to pass on to electricity users the costs it will incur on relocating a number of its facilities that will be affected by the PPP projects.

The order of ERC noted in part, “…approval of cost as capex shall be deferred until such time that Meralco could justify that the cost should not be shouldered by the DPWH.It is worthy to note that the DPWH shouldered the cost of such relocation project in the vicinity of airport.”

Among the ERC-approved Meralco capex project for this year include capital outlay for the development of P436 million Malacañang 115 kilovolts (KV) to 34.5 KV GIS substation, P479 million Lucena 115 KV to 34.5 KV substation, the P336 million construction of BF Parañaque Ninoy Aquino International Airport (Naia) 3 Malibay 115 KV line, a P781 million infrastructure to support advanced metering of prepaid retail electricity service, P1.2 billion for the connection and metering project of the National Housing Authority (NHA), P2.6 billion for the connection and metering of new service customers, P748 million for the reinforcement of distribution lines, P456 million for the replacement of poles, P2 billion for the replacement of ageing, damaged and defective distribution facilities, P476 million for the acquisition of information system equipment, and P476 million for renewal and refurbishment projects.

The ERC advised Meralco to conduct transparent, open and competitive bidding to acquire the equipment, devices and materials for the proposed projects. RIZA LOZADA