Meralco urges ERC to release decision

By Ed Paolo Salting – October 30, 2024
from The Manila Times

MANILA Electric Co. (Meralco) is waiting for the Energy Regulatory Commission (ERC) to decide on the status of the fifth regulatory period and if the distribution utility will be required to keep a P1.3522 per kilowatt-hour distribution charge up to 2026.

Meralco Senior Vice President Jose Ronald Valles told The Manila Times on Monday that they were waiting for an official ERC decision so that the necessary preparations, particularly for a likely refund, could begin.

An early ruling will help prevent delays and ensure that the correct rates are charged to consumers, he added.

“Several weeks ago, I heard suspended ERC Chairman Monalisa Dimalanta report on TV that there was already a decision on our fifth regulatory period, and the ERC supposedly ruled that the entire period is already considered as lapsed, and that Meralco will retain the P1.3522 per kilowatt-hour distribution rate for the whole period,” Valles said.

“We are expecting to receive the official decision any time so that we can start the process of preparing for both the sixth regulatory period and also for the possible refunds we will issue to customers for the whole fifth regulatory period,” he added.

Asked about the amount involved, Valles said they were expecting to refund a total of P16 billion to account for rate changes.

“When we had a refund last time… it reached to about P40 billion, and the nature of this next refund will be around the same because the entire four-year period of the fifth regulatory period will be considered lapsed,” he added.

“With that in mind, the ERC will consequently direct us to refund… In our initial estimate, for at least three years, that would be around a total of P16 billion. So, that’s a huge relief for the consumer. That’s why we want to have that closure already.”

ERC action will also prevent a repeat of lapses that occurred during the previous regulatory period, Valles said.

“We’re asking the ERC to come out with the order already and release the decision as it has been announced publicly,” he said.

“The release of that order will trigger the filing of that application for refund and the preparation for the filing of the sixth regulatory period. And we don’t want that to be delayed again,” he added.

“Under the rules, we have a full 21-month period to prepare for the price reset [and] the said period will commence in July of 2026, so in October we should already be starting, but we have not done anything yet. I hope the commission realizes this.”

Meralco shares fell by P2.60, or 0.53 percent, to P490 apiece on Tuesday.