ERC evaluates cost impact of Meralco metering project

The Energy Regulatory Commission sees an increase of at least P0.23 per kilowatthour in electricity bills of Manila Electric Co. (Meralco) when its advanced metering infrastructure (AMI) project is approved.

This is why the power distributor’s application merits a thorough cost evaluation before it gives the go-signal to pursue the project.

The agency is currently evaluating the cost implications of Meralco’s pending AMI application to minimize its impact on consumers.

ERC’s “initial calculations disclosed that an average rate adjustment of P0.2309 per kwh will be added to the customers’ electric bill if the smart meters will be shared by all Meralco customers, while an average rate adjustment of P0.3972 per kwh if charged only to Meralco bulk customers,” ERC chairperson and CEO Agnes Devanadera said.

Sought for clarification, Devanadera said the projected increase in electricity bills is computed on the “cost of investment which the law allows to be recovered.”

Meralco included the smart meters and other devices and systems necessary to implement its AMI project in its application for capital expenditures in April 2017.

The company’s adoption of smart meters within its franchise has slowed due to regulatory lag.

It started rolling out smart meters in 2015 and because of the strong demand to shift to prepaid meters, it set a target of 3.3 million smart meters by 2024 in a bid to transform its network into a smart grid.

Meralco filed applications with the ERC for around a million smart meters.

The implementation of the AMI will promote demand side management and energy efficiency as it provides tools or services that empower consumers to manage their consumption.

It is also expected to enhance the operational efficiency of the distribution utility and the reliability of its network as well as support retail competition and access.