Meralco says junked rate hike petition will have no effect on operations

ABS-CBN News

Posted at Oct 06 2022 11:22 AM

A lineman works on an electric post at the Katuparan housing project in Vitas, Tondo Manila on July 7, 2021. George Calvelo, ABS-CBN News/File
A lineman works on an electric post at the Katuparan housing project in Vitas, Tondo Manila on July 7, 2021. George Calvelo, ABS-CBN News/File

MANILA - The decision of the Energy Regulatory Commission to deny the rate hike petition by Meralco and power supplier SMC Global Power will have a "neutral" impact on operations and financials, Meralco said on Thursday.

Meralco and SMC Global Power filed for temporary relief of their 2019 power supply agreement (PSA) and to charge higher rates.

But the ERC denied the petition citing the companies' 10-year power supply agreement (PSA) which was put in place to protect consumers. 

"With reference to the said news reports, we would like to confirm these ERC orders as stated in the said new reports and the clarification that these will be neutral on the Company’s operations and financials because the power supply agreements involved pass through generation charges," it said in a disclosure to the stock exchange.

Meralco said it was responding to an inquiry by the Securities and Exchange Commission. 

SMC Global on Wednesday said the computation sent by Meralco along with its petition proved that their proposed rate hike was in the best interest of consumers.

SMC Global Power also said it would ensure continued supply despite the "crippling" impact of the petition denial.

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