ERC okays Meralco’s rate hike effective July 1

June 29, 2012 10:42 pm 

By Joann Santiago

MANILA, June 29 –- The Energy Regulatory Commission (ERC) has granted Manila Electric Company (Meralco) an authority to implement a higher distribution rate effective July 1, 2012 to June 30, 2013.

In a disclosure with the Philippine Stock Exchange (PSE) Friday, Meralco said it received the ERC Order on the new distribution rate earlier in the day.

The provisional authority increased the electric company’s maximum average price (MAP) to P1.6303 per kWh, from the 2012 regulatory year (RY) MAP of P1.6012 per kWh for new distribution, supply and metering charges.

In 2011, Meralco’s MAP stood at a higher P1.6464 per kWh.

The adjustment in the electric company’s MAP was made based on ERC’s performance-based regulation (PBR), which the Commission conducts annually.

Under the PBR, ERC checks on all private distribution utilities’ (DUs) rates, public hearings and performance against mandated technical and customer service standards.

Meralco said that through PBR, “consumers can expect a higher level of service, while allowing DUs to achieve a reasonable return and ensure efficient service and system upgrade.” (PNA)

LAM/JS

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