Meralco files petition to collect P8b from customers
By Alena Mae S. Flores – June 20, 2023, 7:00 pm
from manilastandard.net
Power retailer Manila Electric Co. filed an application with the Energy Regulatory Commission to collect from consumers P8 billion or equivalent to an increase in power rates of about P0.2191 per kilowatt-hour over a 12-month period.
Meralco said this represents under-recoveries from the generation rate, transmission rate, system loss and real property taxes. Meralco’s application also includes over-recoveries from the lifeline subsidy, senior citizen discounts and subsidy and local franchise tax.
The recoveries cover the period January 2020 to December 2022 for generation, transmission, system loss, lifeline subsidy and senior citizen discounts and subsidies and January 2021 to December 2022 for the local franchise tax and real property tax.
“It is urgent that a provisional authority be immediately issued upon filing and pending hearing of the instant application. Meralco stresses that the costs covered by this Application are all pass-through costs. Hence, Meralco should neither earn any income nor incur any losses from the imposition of the same,” the company said.
Meralco wants to collect under-recoveries in the generation charges amounting to P6.413 billion equivalent to P0.1975 per kWh.
The generation charge over or under-recovery occurs due to the lag in the recovery of generation costs from consumers. The rate used to compute the generation charge in a current billing month is based on the generation cost incurred in the previous month, which is the supply month.
Meralco is also seeking approval for the under-recovery in system loss charges amounting to P764.168 million equivalent to P0.0151 per kWh.
System loss over/under recovery mainly occurs due to the difference between the actual average cost of system loss for a given year and the sum of the actual monthly system loss billings for that same year.
The company also sought approval for the under-recovery in transmission charges amounting to P607.375 million equivalent to P0.0120 per kWh and real property taxes of P228.875 million equivalent to P0.0045 per kWh.
Meanwhile, Meralco computed an over-recovery in the local franchise tax amounting to P27.337 million, lifeline subsidy at P776,623 and senior citizen discounts and subsidy at P2.504 million for a total equivalent rate of P0.0009 per kWh.
