Meralco seeks ERC approval to recover P11-B

by Alvin Elchico, ABS-CBN News

Posted at Feb 18 2014 04:01 PM | Updated as of Feb 19 2014 12:01 AM

MANILA, Philippines - Manila Electric Co. (Meralco) has already filed with the Energy Regulatory Commission a petition to recover the spike in generation charge for January which was not implemented due to the Supreme Court temporary restraining order.

While the "all-in increase" is P5.33 per kilowatt hour(kWh), Meralco only cited in their application to recover P4.56/kWh in generation charge.

Meralco wants the ERC to provisionally approve the following spike in the generation charge component of electricity prices:

For March - increase of P0.84/kwh to cover P2.05 billion spike in fuel costs during the Malampaya shutdown.

For April-August - increase of P0.74/kwh to cover replacement power (P497 million) and the spike in the cost of power in the WESM (P8.53billion).

The total recovery that Meralco is seeking is around P11 billion.

But ERC executive director Francis Juan says the petition will still have to undergo hearings and it takes 30 days before the commission can act on any petition.

This means it is unlikely that Meralco's prayer to seek the first tranche of the increase in March will be granted.