The Energy Regulatory Commission (ERC) has implemented amendments to its rate-setting resolution for privately owned electricity distributors to address delays in resetting distribution rates, starting with Manila Electric Company (MERALCO).
In a report by Manila Bulletin, ERC Chairperson and CEO Monalisa C. Dimalanta described the changes as a critical step in resolving regulatory gaps that have hampered rate-setting timelines.
Dimalanta added that this reset is crucial to position the distribution rates with regulatory efficiency and operational realities. She added that the amendments would protect consumers while encouraging utilities to invest in improved services for the evolving energy landscape.
The amendments were prompted by delays in MERALCO’s Fifth Regulatory Period (5th RP), covering 2023 to 2027, which faced legal challenges and stakeholder actions.
To address these issues, the ERC recalibrated its rules to ensure future rate resets are conducted on time while maintaining transparency and fairness.
Although focused on MERALCO’s 5th RP, the updated framework will guide rate resets for other private distribution utilities (DUs) in the Philippines.
The ERC plans to issue further amendments to detail specific timelines and processes across the sector.
The rate reset process is vital to determining fair and reasonable electricity rates, allowing the ERC to assess utility performance and ensure consumers pay only for justified costs.
The ERC said that the amendments aim to enhance regulatory efficiency, uphold accountability, and strengthen stakeholder trust in the energy sector.
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