Consumer group National Association of Electricity Consumers for Reforms Inc. (Nasecore) criticized the Energy Regulatory Commission’s (ERC) recent order for its alleged failure to protect consumers regarding Manila Electric Co.’s (Meralco) rate reset.
The ERC, in its Oct. 30, 2024 order, announced that Meralco’s fifth regulatory period would span 2025 to 2028, instead of the originally planned 2022 to 2026.
The ERC classified the period from July 1, 2022 to Dec. 31, 2024, as a “lapsed period” and directed Meralco to refile its fifth regulatory period application based on new rules to be adopted.
Nasecore said the regulator had failed to establish the rules for setting distribution wheeling rates (RDWR) for the fourth regulatory period, covering regulatory years 2015 to 2019.
The group said that due to this failure, Meralco was left without a governing rate for the fourth period and requested an interim rate, which the ERC approved at P1.3810 per kilowatt-hour in 2015. The interim rate was later reduced to P1.3522 per kWh.
Nasecore said the interim rates were implemented for seven years, until 2022, exceeding the four-year regulatory period by more than three years.
It said that with the modification of the fifth regulatory period to cover RY 2025 to 2028 instead of RY 2022 to 2026, two years were added to the seven-year lapsed period.
This extension, the group said, allows the interim average rate of P1.3522 per kWh to remain effective until the rate is reset during the extended fifth regulatory period.
“To conveniently modify a particular regulatory period such as the fifth RP, which covers RYs 2022 to 2026, in the middle of its implementation is an uncalled-for disruption,” Nasecore said. “This indubitably gives applicant Meralco the undue advantage of continuously imposing upon its customers a rate that is unjust and unreasonably high.”
