ERC orders Meralco to explain 0.42/kwh rate hike

Power utility giant Manila Electric Company (Meralco) is being asked by the Energy Regulatory Commission (ERC) to explain the overall 0.42 per kilowatt-hour upward adjustment in its rates this month given that it was a low-demand period and the cost of fuels, including that of coal, had been on a downtrend.

“We have an order that is actually being circulated right now and that order will indicate that we’re directing Meralco to submit the justifications for why the rate increased by a certain amount for last month,” ERC Chairman Jose Vicente B. Salazar has announced to reporters in late afternoon briefing on Wednesday.

He added that the policy is to submit the data-justifications at the end of the next month preceding a billing period. However, given the questioned circumstances in the February billing, the ERC will order the utility firm on its document submissions for post-verification process ahead of time.

“Definitely, they will submit it by February 28, but since there’s now an indication that it’s a substantial increase, we’re asking them (Meralco) to justify why it had been substantial,” Salazar stressed.

In addition, ERC spokesperson Floresinda B. Digal has emphasized that they will scrutinize the “replacement power sourcing” of Meralco within that particular