THE Manila Electric Co. (Meralco), the country’s largest power distributor, has petitioned for a provisional authority from the Energy Regulatory Commission (ERC) to adjust its rates by P0.1938 per kilowatt hour (kWh) covering the second regulatory period from July 1, 2008 to June 30, 2009.

In a disclosure to the Philippine Stock Exchange, Meralco’s petition showed that its rates will increase to P1.3607/kWh from P1.1669/kWh, which is already inclusive of the underrecoveries of rates set on its first regulatory period from July 1, 2007 to June 30, 2008 which remains pending for implementation until now.

Meralco further explained that the P1.3607/kWh rate adjustment will already cover distribution, supply and metering charges amounting to P0.8992/kWh, P0.2941/kWh and P0.1674/kWh, respectively.

“The MAP 2009 of P1.3607/kWh also includes a correction factor of P0.1580/kWh due to the delay in the implementation of MAP under the first regulatory year that has resulted in underrecoveries for the company,” Meralco said.

Meralco said if not for the under-recoveries from the nonimplementation of the MAP last year, the calculated MAP for 2009 could have been lower at P1.2557/kWh and closer the P1.260/kWh MAP as applied for in the final determination for Meralco’s entry into the performance-based rate-setting (PBR) regulatory regime.

Meralco added its proposed rate schedules would depend on the consumption level of its customer, saying that supply and metering charges will be kept at its level of  P0.5450/kWh and P0.3531/kWh, respectively, for residential and General Service A customers.

Meralco said the distribution charges for residential end-users and General Service A have been proposed as P0.9373/kWh for those with consumption of up to 200 kWh); P1.311/kWh for those with 201-kWh to 300-kWh consumption; P1.6635/kWh for those in the 301-kWh to 400-kWh consumption bracket; and P2.2775/kWh for those using 401 kWh and above.

Meralco further stated that it will also be submit an application for time-of-use (TOU) rates to cover customers that currently do not meet the demand/consumption threshold under the approved TOU rate but have the ability to shift/increase consumption during off-peak hours.

Such will “promote demand-side management by providing incentives for shifting peak loads to off-peak hours and increasing off-peak consumption,” Meralco said.

THE Manila Electric Co. (Meralco), the country’s largest power distributor, has petitioned for a provisional authority from the Energy Regulatory Commission (ERC) to adjust its rates by P0.1938 per kilowatt hour (kWh) covering the second regulatory period from July 1, 2008 to June 30, 2009.

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