Meralco customers may get refund

MANILA, Philippines - Manila Electric Co. (Meralco) customers may soon get a refund of overcharged transmission costs.

Energy Regulatory Commission (ERC) executive director Saturnino Juan said they have finished deliberations on the matter and would soon come up with a decision.

“There will be a refund because in the main decision of the commission, it already found that there’s a need. The question now is how much should be refunded and by who, to whom and how it will be flowed through to the end consumers who actually paid these amounts,” Juan said.

Meralco is seeking a refund of P10 billion covering double charges of the Power Sector Assets and Liabilities Management Corp. (PSALM).

Meralco earlier submitted the summary of transition supply contract line loss computation, including official receipts covering July 2006 to May 2012 to support its overcharging claims.

In March 2010, ERC ruled that there was double charging of transmission line costs on the start of operations of the Wholesale Electricity Spot Market (WESM) in Luzon.



ERC earlier required PSALM, Philippine Electricity Market Corp. and Meralco to submit supporting documents for further deliberations.

source: philstar.com

Electricity bills to go up in May

MANILA, Philippines - Brace for higher electricity bills in May, after the Energy Regulatory Commission (ERC) approved a government rate-hike petition.

In a decision, the ERC cleared an increase of P0.069 per kilowatt-hour in Luzon, P0.61 in the Visayas and P0.04 in Mindanao.

The rate hike is meant to help state-owned National Power Corp. (Napocor) settle fuel and foreign-currency exchange costs incurred from January 2007 to April 2010.

"These fuel, purchased power, and foreign currency costs are legitimate costs already incurred in their supply of power to their various customers. By law, they are entitled to recover these costs as part of the price of electricity they sell to their customers," Francis Saturnino Juan, ERC executive director, said.

The rate adjustment will take effect in May, and will continue to be passed on to consumers until Napocor's fuel and forex costs are recovered.

"The ERC has already mitigated the impact of these adjustments by spreading their recovery over a longer period and by coming out with this decision at the soonest to avoid additional carrying charges to be included in the recoverable amounts," Juan said.

Under ERC regulations, Napocor may recover previous costs it incurred in its operations through what is termed as deferred accounting adjustments (DAA).

These DAAs are the Generation Rate Adjustment Mechanism (GRAM) and Incremental Currency Exchange Rate Adjustment (Icera) for fuel and forex, respectively.

The GRAM and Icera are variable cost adjustments prescribed by the regulator that allow Napocor to recover from or refund its customers any increase or decrease in its fuel and purchased power cost as well as forex-related costs incurred in previous months.

source: interaksyon.com