Meralco rate hike decision released by Q3, says ERC

MANILA, Philippines —  The Energy Regulatory Commission (ERC) will release its decision on Manila Electric Co. (Meralco)’s proposed P532-billion revenue program by the third quarter of the year.

ERC chairman and CEO Francis Saturnino Juan said the target is to release its ruling on Meralco’s proposed rate resetting by either August or September.

“Most likely, the earliest that we will be able to take up the recommendation of staff insofar as the application of Meralco will already be toward the end of August or September,” Juan told reporters in a briefing.

“Right now, we are already starting the evaluation and informal deliberation and discussions,” he said.

Juan said the regulator must first conduct an inspection of the company’s assets within the month lasting until next month.

The ERC is also deliberating the rate reset proposals of Cagayan Electric Power and Light Co. Inc., Cotabato Light and Power Co. Inc. and Dagupan Electric Corp. as part of the first entry group.

Juan said the ERC may take up the proposals of the other three power generators ahead of Meralco.

“Maybe we can decide as early as August. But we are trying to be as comprehensive and as careful in our evaluation, because we do not want to rush to judgment at the expense of not being able to take into account all the relevant information or evidence that was supplied by Meralco as well as the other interveners,” he said.

Meralco earlier asked the ERC to authorize the collection of around P532.13 billion from consumers during its first regulatory period spanning 2027 to 2030.

It has applied for an average distribution tariff of P2.34 per kilowatt-hour (kWh), well above its last approved rate of P1.35 per kWh.The proposed increase is intended primarily to fund the company’s P272 billion capital expenditure program over the four-year period.