Meralco hopes for ERC nod on P8B–P9B cost recovery
Manila Electric Co. (Meralco) is still hopeful for regulatory approval of its petition to recover costs ranging from P8 billion to P9 billion, which it filed three years ago.
Jose Ronald Valles, head of Meralco’s regulatory management team, said the distribution giant is optimistic of getting the Energy Regulatory Commission’s (ERC) favorable decision. This, especially as the ERC cleared a multibillion-peso adjustment in power rates.
“Since the decision on the P31 billion [adjustment] has already been released, we are hoping the ERC will soon rule on this as well, since these costs have already been paid to the generators, the transmission provider, the government, and other entities,” he told reporters last week.
Last January, the ERC allowed Meralco and four electricity producers to recover from consumers more than P31 billion, or 28 centavos per kilowatt-hour, starting this March.
Meralco may bill this through a period of 12 months to 36 months, or until the amount is fully recovered.
Valles also said they are awaiting the approval of the Department of Energy (DOE) for Meralco’s planned bidding for three power supply agreements. These were supposed to be completed in 2025.
He also hopes that Meralco will be allowed to just inform the agency about the changes in its power supply procurement plan. Refiling a new one may lead to months of delay.
Valles said Meralco is eyeing another supply contract auction this year.
As for the DOE, Valles said the approval remained stalled as the agency was also awaiting comments from the Philippine Competition Commission.
