The Manila Electric Co. (Meralco) is set to file so-called under-recovery claims before the Energy Regulatory Commission (ERC) aggregating P7.9 billion from 2020 through 2022.
The company said the request could push charges to adjust by an estimated 22 centavos per kilowatt hour (kWh) for businesses and households.
“Our proposal is to recover it over a period of 12 months. So, we have an estimated impact to customers of around 22 centavos per kWh but still dependent on ERC approval with respect to the term if approved for a longer or shorter period,” said Ronald Valles, Meralco first vice president and head of regulatory management office, during a virtual briefing on Monday.
According to Valles, under recoveries happen because of the lag from payment to generation companies and final billing to customers.
Meralco said the billing components involved in the under recovery for the period include the generation, transmission, system loss and real property tax, among others.
Meralco also said that under ERC rules, distribution utilities in Luzon are required to file their over or under recoveries by 31 March this year.
However, the company requested for an extension to file until April 30 citing voluminous documents requiring extensive preparation and validation.
