Manila Electric Co. (Meralco) asked the Energy Regulatory Commission (ERC) to use P1.3522 per kilowatt-hour (kWh) as its average price for regulatory years 2023 and 2024.
Meralco asked ERC to consider RY 2023 and RY 2024 as lapsed period and use the P1.3522 per kWh as the final rate for the said years.
This followed Meralco’s decision to withdraw its application with the ERC for a total annual revenue requirement (ARR) for the fifth regulatory period amounting to P320.4 billion with an average price of P1.5702 per kWh. Meralco’s existing average distribution price is at P1.35 per kWh.
Meralco first vice president and regulatory management head Jose Ronald Valles said the ERC has yet to set the pre-trial order and the case for hearing/presentation of evidence. The application was filed on March 15, 2022.
Valles said resolving the pending application would violate the provisions of the Rules for Distribution Wheeling Rates (RDWR) where the ARR should be based on a forward-looking analysis of forecast cash flow requirements and represent the optimal forecast revenue requirement.
“Due to delays, the resolution of the application is no longer based on forecasts—the first RY of the 5RP ended on June 30,2023 while the second RY (i.e. RY 2024) of the 5RP is almost at its midway. With the additional activities to be completed, it is likely that the final resolution of the case will not be completed even before the end of RY 2024,” the executive said.
Meralco’s application sought approval for its ARR and performance incentive scheme (PIS) for regulatory years 2023 to 2026 (July 1, 2022 to June 30, 2026).
The company filed an urgent omnibus motion on Sept. 28, 2023 to withdraw the 5th RP application and ask that it be allowed to refile it covering the period RY 2025 to RY 2028.
