No increase in electricity rates next year — ERC

There would be no power-rate hike next year.

This was the assurance made by the Energy Regulatory Commission (ERC), the country’s power sector regulator, after a consumer group warned of a possible P7 per kilowatt-hour (kWh) increase in power rates next year.

ERC chairman Rodolfo Albano also pointed out that any increase would be subjected to public consultation before it is implemented.

"Be it emphasized that any rate adjustment will not be reflected in the consumers’ bill without having been subjected to public hearings and scrutiny," Albano said, reacting to the statement made by Consumer Oil Price Watch (COPW) chairman Raul Concepcion in a press conference last Wednesday that electricity rates in Meralco franchise areas will likely be jacked up by February next year.

"Mr. Concepcion should not pre-empt the ERC and should not make scary statements that will drive the spirit of the holiday season away from every Filipino home."

To clear things up, Albano has asked Concepcion to participate in the public hearings to witness how ERC exercises transparency in undertaking due process and evaluation.

"The rate adjustment cases filed by the power providers have yet to complete the required evaluations and public hearings. Thus, no conclusion can be drawn at this time," he said.

Albano added the commission will protect consumers against rate shocks that may result from price adjustments triggered by economic factors such as hike in fuel cost, currency adjustments and other factors that may have an impact on electricity rates.

"The ERC assures that the electricity consumers will never experience rate shocks," Albano said.

For its part, Meralco said the rate-increase applications would still be adjusted due to the recalculation on the bills of the wholesale electricity spot market (WESM) after an anomaly has occurred.

Instead of a rate increase of P4.43 per kWh, the adjusted increase would only be P2.748 per kWh for the generation charge.

Meralco data showed that the adjustment for the system loss for residential users would also be lowered to P0.3721 per kWh to from P0.7296 per kWh.

For its part, Concepcion, who has been actively monitoring the power rate movements, said Meralco, so far, has three pending rate increase applications with the ERC.

With this, he urged the ERC to be prudent in giving in to the power firms’ application for rate increase.

Concepcion also asked ERC to stay transparent with all these rate hike petitions and to consider a staggered increase if there would be any.