ERC tells Meralco to refund P1.4 billion in over collections
By BusinessMirror – December 30, 2020
THE Energy Regulatory Commission (ERC) has directed the Manila Electric Company (Meralco) to refund to consumers its over collections in the following pass-through charges: Transmission Rate (TR), System Loss Rate (SLR), Lifeline Subsidy Rate (LSR), and Senior Citizen Subsidy Rate (SrCSR).
The ERC, upon review of Meralco’s submitted data for the period from January 2017 to December 2019, validated the over recoveries of P1.4 billion in the said pass-on charges.
It was also confirmed, however, that Meralco likewise incurred under recoveries of P2.38 billion in the Generation Rate (GR).
“The Commission’s initial evaluation of the documents submitted by Meralco revealed that it (Meralco) incurred a total over collection amounting to P1.4 billion in the Transmission, System Loss, Lifeline Subsidy and Senior Citizen Discount Rates, but also incurred a total of P2.38 billion under collection in the Generation Rate,” ERC Chairman and CEO Agnes VST Devanadera explained in the recently issued order.
The ERC directed the utility to implement its over and under-recoveries, by way of refunding and collecting the same, subject to the final evaluation by the Commission. ERC ordered Meralco to refund the over-recoveries at an average rate of P0.1331/kWh, for a period of approximately three months until fully refunded, and to collect the computed under-recovery in the Generation Rate, with an equivalent rate of P0.0395/kWh, for approximately 24 months until fully collected starting on the next billing cycle upon receipt of the ERC’s subject Order. The longer period for Meralco to collect the under charges is meant to protect consumers by mitigating the impact of such under-recovery collection, ERC said.
Moreover, Meralco was directed to reflect the over and under-recoveries in the monthly computations of GR, TR, SLR, LSR and SrSR as “OGA” for Generation, “OTCA” for Transmission, “OSLA” for System Loss, “OLRA” for Lifeline Subsidy, and “OSrRA” for Senior Citizen Subsidy. Meralco must submit within 10 days from its implementation a sworn statement indicating its compliance with the ERC’s relevant Order.
Distribution Utilities (DUs) are required under ERC Resolution 16, Series of 2009 to file their respective applications to the ERC once every three years in order to ensure that the recovery of the said various pass-through costs is fair and proper.
