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ERC approves lower Meralco average rates of P1.5562/kWh for 2015

from July 1, 2014 04:00 pm to July 1, 2014 04:00 pm

by James Loyola

June 25, 2014

http://www.mb.com.ph/erc-approves-lower-meralco-average-rates-of-p1-5562kwh-for-2015/

 

Manila Electric Company (Meralco) has received the provisional approval of the Energy Regulatory Commission (ERC) for its maximum average price of P1.5562 per kilowatt-hour (kWh) for 2015, P0.085 per kWh lower than this year’s MAP of P1.6474 per kWh.

 

“The Commission provisionally approves the application filed by Meralco for approval of a) the maximum average price for regulatory year 2015; and the translation of the MAP for RY 2015 into a distribution rate structure for its various customer classes, with prayer for issuance of a provisional authority,” the ERC said in its order.

 

The ERC directed Meralco “to implement in the next billing cycle the provisionally approved distribution, supply and metering charges.” Meralco will thus implement the new rates in its July billing to customers as its regulatory year starts from July 1, 2014 to June 30, 2015.

 

The new rate consists of P1.1398 per kwh distribution charge, P0.2537 per kWh supply charge and PR0.1627 per kWh for metering charge.

 

Residential customers with a monthly consumption of up to 200 kWh has an approved distribution rate of P1.1282 per kWh, 201 to 300 kWh at P1.4855 per kwh, 301 to 400 kWh at P1.82227 per kwh and 400 kWh and above at P2.41 per kWh.

 

Meralco said the lower rates are lower than this year’s approved MAP “to allow its customers to immediately enjoy the lower distribution rates, it is necessary that a provisional authority be immediately issued authorizing it to implement the proposed rates pending hearing on the merit of the instant application.”

 

The utility earlier said its different customer classes will experience around 5 to 6 percent reduction in their Meralco (distribution, supply, metering) charges.

 

A residential customer consuming 200 kWh, for instance, will have a combined P0.15 per kWh reduction in its Meralco charges, from P2.35 per kWh to P2.20 per kWh, representing around 6 percent of what he currently pays.

 

The distribution utility added that it has been able to improve its service to the customers better than the standards set. Because of this, customers now experience lesser interruptions, lower system losses and faster customer response time.