MANILA, Philippines - Power retailer Manila Electric Co. (MERALCO) will implement a P0.03 per kilowatt hour hike in distribution charge effective July this year.
The Energy Regulatory Commission (ERC) granted MERALCO provisional authority to implement the new set of rates covering regulatory year 2013 or from July 2012 to end-June 2013.
The rate covers distribution, supply and metering charges for the different customer classes.
In a disclosure to the stock exchange, MERALCO said the order translates to a maximum average price of P1.6303 per kilowatt hour starting July, from P1.6012 per kilowatt hour which was the rate for regulatory year 2012.
Under the performance-based regulation (PBR), distribution utilities are required to undergo a verification of their rates, public hearings, and regulatory scrutiny that considers such factors as the utilities' performance against mandated technical and customer service standards.
The performance based regulation is an internationally accepted rate-setting methodology. It helps DU's achieve a reasonable return and ensure efficient service and system upgrades.