Power retailer Manila Electric Co. (Meralco) agreed to file an updated rate reset application with the Energy Regulatory Commission (ERC) covering the 5th regulatory period.
This developed as the ERC announced it adopted key amendments to ERC Resolution No. 10, Series of 2021, through Resolution No. 17, Series of 2024.
These amendments aim to ensure immediate conduct of the reset process for privately-owned distribution utilities (DUs), starting with Meralco’s 5th RP.
“In practical terms, Meralco will have to file an updated reset application to cover the modified 5RP. Hopefully, unlike the reset application that Meralco filed in 2022, this new reset can be resolved expeditiously,” Meralco head of utility economics Lawrence Fernandez said.
According to the ERC, the regulated entity including Meralco should calculate the maximum average distribution wheeling rate for each regulatory year and for an adjustment of its distribution tariffs for each customer segment four months prior to the commencement of each application year.
It said the resolution represents a critical step in resolving regulatory gaps that have impacted rate-setting timelines.
The ERC said it acknowledges that certain years within Meralco’s original 5th RP already lapsed given the need to address the complex legal challenges involved, along with prior actions of various stakeholders.
It said these amendments are designed to recalibrate the rules to ensure timely resets while maintaining fairness and transparency.
ERC chairperson and chief executive Monalisa Dimalanta emphasized the unanimity among members of the commission on the importance of the rate-setting process.
“This reset is essential to align distribution rates with operational realities and regulatory efficiency. By addressing these delays, we reaffirm our commitment to protecting consumers and ensuring that our distribution utilities direct their investments towards improved services in the changing energy landscape,” Dimalanta said.
