The Manila Electric Co. (Meralco) has asked for a P0.22 per kilowatt-hour (kWh) rate hike to compensate for P8.01 billion in so-called under-recovery claims before the Energy Regulatory Commission (ERC).
Meralco told ERC the petition covers under-recovery claims from 2020 to 2022 broken down into generation rate of P6.41 billion, transmission rate of P607.38 million, system loss rate of another P764.17 million and real property tax amounting to P228.88 million.
In April, Ronald Valles, Meralco first vice president and head of regulatory management office, first bared of the claims during a virtual briefing with reporters.
Valles said the recovery petitions arise from the lag between paying the generation companies and billing the customers.
In the same filing, Meralco also applied for over-recovery of P30.62 million equivalent to a refund of P0.0009 per kWh on the first month of a 12-month refund scheme but subsequently reduced to P0.0007 per kWh in the succeeding 11 months.
The refund due to over-recovery on lifeline subsidy households total P776.62 million, for senior citizen discounts and subsidy total another P2.5 million plus local franchise tax refund of P27.34 million.
Meralco said ERC rules mandate distribution utilities in Luzon to file over or under recovery claims by 31 March.
Meralco requested for an extension to file until 30 April citing the voluminous documents that need to be prepared and validated.
| BILL COMPONENT | UNDER RECOVERY | RATE IMPACT | AMORTIZATION PERIOD |
| Generation | 6,413,157,436.66 | 0.1875 | 12 MONTHS |
| Transmission | 607,375,216.17 | 0.0120 | 12 MONTHS |
| System loss rate | 764,168,532.40 | 0.0151 | 12 MONTHS |
| Real property tax | 228,875,467.60 | 0.0045 | 12 MONTHS |
| TOTAL | 8,013,576,652.83 | 0.2191 |
| BILL COMPONENT | OVER RECOVERY | RATE IMPACT | AMORTIZATION PERIOD |
| Lifeline subsidy | 776,623.37 | -0.0002 | 1 MONTH |
| Senior citizen discounts and subsidy | 2,504,375.44 | -0.0001 | 12 MONTHS |
| Local franchise tax | 27,337,032.70 | -0.0006 | 12 MONTHS |
| TOTAL | 30,618,031.51 | -0.0009 |
SOURCE: MERALCO ERC FILING
Valles mentioned about the same rate impact but explained then that it will still be “dependent on the ERC’s approval with respect to the term if approved for a longer or shorter period.”
