Meralco seeks regulatory approval for P15.19 B emergency capex
Manila Electric Co. (Meralco) is seeking regulatory approval for its urgent capital spending next year.
Meralco has filed an application with the Energy Regulatory Commission (ERC) for its proposed P15.19 billion emergency capital expenditure for regulatory year 2020, which starts on July 1, 2019 to June 30, 2020.
The company filed a “very urgent capex projects” to provide reliable service to its customers while waiting for the regulatory reset of the fifth regulatory period starting July 1 to June 30, 2023.
“Meralco’s very urgent regulatory year 2020 capital expenditure application is intended to avert the foreseen emergency situations. Primarily, these capex projects are necessary to ensure the reliable operation of its distribution network and continuous distribution service and connection to meet the growing needs of its more than six million customers,” Meralco said in its filing.
The power distributor said it needs to increase the capacity of its network as it expects its customer base to expand to seven million and peak demand to reach 7,750 megawatts by 2020.
It also said it needs to maintain existing assets for sustained network efficiency, reliability and power quality.
Meanwhile, the company has also lined up automation, innovation and technology projects to continue its Advanced Metering Infrastructure program.
Other projects are also for compliance with regulatory requirements and to support government projects.
Under the capex proposal, Meralco is asking the ERC to allow it to build 21 major projects worth P4.73 billion.
The biggest major project covers the expansion of the company’s prepaid retail electricity service and development of meter data collection system which amounts to P879.52 million.
Meralco has also allotted P475.54 million for the relocation of electrical facilities affected by the construction of government projects.
The rest of the major projects include development and expansion of substations, among others.
Meanwhile, Meralco is seeking clearance for 50 residual projects worth P10.46 billion. Residual projects are required to maintain existing assets, improve network performance and enhance customer service performance in the current regulatory period.
In the same application, the power distributor said it shall also refund to customers their payments for projects funded under the Contribution in Aid of Construction (CIAC) scheme.
“The CIAC-funded projects are eligible for refund considering that the lines and facilities where the customers are connected are now distribution assets as they already serve more than one customer,” it said.