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    Meralco reevaluates plan
    for prepaid electric service
     
    By Paul Anthony A. Isla
    Reporter
     

    MANILA Electric Co. (Meralco), the country’s largest power distributor, is currently reviewing its earlier plan of offering prepaid electricity service.

    The plan is intended to make electricity more accessible to customers, particularly those with low consumption and to the marginalized sector of  society,  hoping to reduce pilferages within Meralco’s franchise area.

    “In view of the technological advancements and cost-efficient systems already available in the market, we plan to revisit our plans to offer prepaid electricity service to make electricity much accessible to the critical mass, and help address incidence of pilferage in our franchise area,” a source, who was privy to the issue  told BusinessMirror in a phone interview.

    The earlier results of their feasibility study before, according to the source, deemed Meralco to put its plan to look for more cost-effective solutions for its customers.

    “While the time-of-use scheme of the National Power Corp. [Napocor] could be applied in our plans to offer prepaid services and benefit our potential customers, we are also looking for a cost-effective solution that will enable to possibly make available to our customers prepaid electricity services,” said the source.

    The source declined to give full details as to how much it will cost Meralco to offer such service, but added that the cost of offering such service was more costly than the cost of having meters read, sending bills to customers and collecting payments.

    The cost of prepaid metering, according to the source, when Meralco initially looked into it, was more expensive. “Mobile commerce has helped bring the cost of prepaid system to go down,” the source added.

    In another development, Meralco will also seek to increase its reconnection fee to P108.06 for disconnected meters of residential and small commercial customers who are delinquent in their bill payments.

    Its application for this had been filed with the Energy Regulatory Commission (ERC), and public hearings had been set for last July 23 and 30, 2007.

    The existing reconnection fee for residential customers are P20 for those with zero to 200 kilowatt-hours kWh of consumption; P30 for those within the 201 to 300 kWh bracket; P40 for those in the 301 to 1,000 kWh consumption level, and P50 for those with more than 1,000 kWh usage.

    For small commercial customers, which refers to general service customers, reconnection fees are similar to that of residential customers for the same volume of consumption.

    Meralco, in its application, argued that it is seeking the reconnection fee increase after the cost of its operation and maintenance of meters increased.

    Meralco said the higher cost of reconnection fee is also seen as a deterrent to customers who have been delinquent in settling their electricity bills, while it noted that it was last granted an adjustment on its reconnection charges in 1987, or about 20 years ago.

    Apart from reconnection fees, Meralco is also seeking a meter accuracy field testing fee of P780 for those with single-phase meters and P1,200 for those with three-phase meters, which are also applicable to residential and general-service customers. There are currently no charges imposed on this service being rendered by the utility company.

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