Power retailer Manila Electric Co (Meralco) said Friday its rates are subject to a stringent review and approval process to ensure they are fair and reasonable.
Meralco vice president and head of communications Joe Zaldarriaga said the company’s generation rates, which have not changed for 10 years, are among the lowest in the country. He said Meralco’s rate falls within the bottom 30 percent of all distributors, including electric cooperatives (ECs).
Zaldarriaga noted that Meralco’s latest approved weighted average cost of capital (WACC) is the lowest granted by the Energy Regulatory Commission (ERC) to any private distribution utility (PDU).
“Despite such comparatively low rates, Meralco consistently provides a high level of energy security, power reliability, and efficiency,” Zaldarriaga said.
“More importantly, Meralco continues to consistently improve on these performance parameters year after year,” he said.
Zaldarriaga said that while ECs primarily source cheaper power from coal plants, Meralco uses a mix of gas, coal and renewable energy to meet its customers’ growing demand.
He said Meralco sources about 50 percent of its power from gas-fired plants to ensure a sufficient and reliable supply, especially since a moratorium on new coal plants is in effect. “Meralco needs to source power from gas-fired power plants to ensure sufficient and reliable power supply for its customers,” he said.
Zaldarriaga said that calls for Meralco’s rates to match those of ECs that don’t use gas-fired plants would be “a call for Congress to repeal the recently enacted Natural Gas law (RA No. 12120)” and for the Department of Energy (DOE) to reverse its 2023 Power Development Plan.
The plan aims to more than triple installed gas-fired power plant capacity and increase renewable energy to 50 percent of the energy mix by 2040.
“This clamor will clearly set the country back in terms of achieving its renewable energy transition aspirations of 35 percent by 2030 and 50 percent by 2040,” he said.
Zaldarriaga said Meralco’s power procurement aligns with the government’s strategy to use gas as a transition fuel. He also noted that the National Electrification Administration (NEA) has not yet held a competitive selection process (CSP) to implement a DOE order directing ECs to use indigenous natural gas.
He said the increase in total power rates from 2024 to the present could not be attributed to Meralco or its distribution charge.
“We emphasize that Meralco fulfills its mandate and powers its entire franchise area without relying on taxpayers’ money and government funding,” Zaldarriaga said.
“We remain committed to delivering service that balances affordability with long-term supply stability for our over 8 million customers, as well as to support the country’s growing economy,” he said.
