The Energy Regulatory Commission said Tuesday it ordered retailer Manila Electric Co. to recover P2.38 billion from consumers for under-recoveries in generation rates.
It said Meralco should collect the computed under-recovery in the generation rate, with an equivalent rate of P0.0395 per kilowatt-hour for 24 months until fully collected starting in the next billing cycle.
The agency said it directed a longer period for Meralco to collect the under charges to protect the consumers by mitigating the impact of the collection.
The ERC, however, asked Meralco to refund to consumers over collection in pass-through charges amounting to P1.4 billion.
It ordered Meralco to refund the over-recoveries at an average rate of P0.1331 per kWh for three months until fully refunded.
“The commission’s initial evaluation of the documents submitted by Meralco revealed that it incurred a total over collection amounting to P1.4 billion in the transmission, system loss, lifeline subsidy and senior citizen discount rates, but also incurred a total of P2.38 billion under collection in the generation rate,” ERC chairperson Agnes Devanadera said.
The ERC asked Meralco to implement its over and under-recoveries by way of refunding and collecting the same, subject to the final evaluation by the commission.
“Let it be emphasized that the commission, in acting on the pass-on charges confirmation has the consumers’ welfare as its primordial consideration. We will find means, such as stretching the collection of any under collection to a longer period and effecting a quick refund for over collection, in order to temper the impact on consumer’s bill,” Devanadera said.
Meralco head of utility economics Lawrence Fernandez said the company would immediately begin preparations to comply with the ruling.
The ERC said the over collections include transmission rate, system loss rate, lifeline subsidy rate and senior citizen subsidy rate.
The ERC reviewed Meralco’s data for the period January 2017 to December 2019 and validated the over recoveries in the said pass-on charges.
It directed Meralco to reflect the over and under-recoveries in the monthly computations.
Meralco was also required to submit within 10 days from its implementation a sworn statement indicating its compliance with the ERC’s relevant order.
Distribution utilities like Meralco are required under ERC Resolution No. 16, Series of 2009 to file their respective applications to the ERC once every three years in order to ensure that the recovery of the said various pass-through costs is fair and proper.
