Power rates to rise if supplier not allowed to collect costs: Meralco | ABS-CBN
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Power rates to rise if supplier not allowed to collect costs: Meralco
Power rates to rise if supplier not allowed to collect costs: Meralco
MANILA - Electricity rates may rise even higher if the Energy Regulatory Commission fails to decide by March 6 on the petition to allow a major Meralco supplier to pass on higher costs to consumers, Meralco said on Monday.
MANILA - Electricity rates may rise even higher if the Energy Regulatory Commission fails to decide by March 6 on the petition to allow a major Meralco supplier to pass on higher costs to consumers, Meralco said on Monday.
Meralco Regulatory Affairs Head Atty. Ronald Valles said First Gen, its largest supplier of electricity, advised them that it won't order imported liquified natural gas unless the regulator allows the recovery of LNG incremental costs.
Meralco Regulatory Affairs Head Atty. Ronald Valles said First Gen, its largest supplier of electricity, advised them that it won't order imported liquified natural gas unless the regulator allows the recovery of LNG incremental costs.
The ERC earlier ordered Meralco to refund a portion of its rate hike last February after it admitted to ERC that it has not yet verified the incremental costs from imported LNG.
The ERC earlier ordered Meralco to refund a portion of its rate hike last February after it admitted to ERC that it has not yet verified the incremental costs from imported LNG.
According to Valles, if First Gen/First Gas is not able to use imported LNG, it will have to utilize liquid condensates which are much more expensive than indigenous and imported LNG.
According to Valles, if First Gen/First Gas is not able to use imported LNG, it will have to utilize liquid condensates which are much more expensive than indigenous and imported LNG.
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Based on latest data, the equivalent costs of using Malampaya natural gas is around P3.94-P5.45/kwh, while imported LNG costs around P5.61/kwh.
Based on latest data, the equivalent costs of using Malampaya natural gas is around P3.94-P5.45/kwh, while imported LNG costs around P5.61/kwh.
Using liquid condensates will cost P7.80/kwh or more than P2 higher than imported LNG.
Using liquid condensates will cost P7.80/kwh or more than P2 higher than imported LNG.
In response, ERC Chair Monalisa Dimalanta, who is in Canada for a nuclear study mission, said the ERC has already issued an order last week for Meralco to submit additional documents to complete the evaluation.
In response, ERC Chair Monalisa Dimalanta, who is in Canada for a nuclear study mission, said the ERC has already issued an order last week for Meralco to submit additional documents to complete the evaluation.
"Alam naman ng Commission ang trabaho at pinipilit nating gawin ito sa tama at angkop na paraan, lalo na sa usapin ng presyo ng kuryente. While the Commission evaluates Meralco’s motion, Meralco is expected to comply with the least cost standard in procuring power from all its suppliers," Dimalanta said.
"Alam naman ng Commission ang trabaho at pinipilit nating gawin ito sa tama at angkop na paraan, lalo na sa usapin ng presyo ng kuryente. While the Commission evaluates Meralco’s motion, Meralco is expected to comply with the least cost standard in procuring power from all its suppliers," Dimalanta said.
First Gen and ABS-CBN Corp are both part of the Lopez Group of companies.
First Gen and ABS-CBN Corp are both part of the Lopez Group of companies.
news.abs-cbn.com is the official news website of ABS-CBN.
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