Luzon DUs file for rate adjustments

transmission lines (from meralco)

Luzon energy consumers may face an upcoming electricity rate hike as power distributors, including Manila Electric Company (MERALCO), are planning to adjust their rates.

The Energy Regulatory Commission (ERC) said that 48 distribution utilities (DUs) have applied for automatic cost adjustment and true-up recoveries for the years 2020-2022. Meanwhile, 20 DUs have yet to file their applications.

MERALCO has filed an application with the Energy Regulatory Commission (ERC) to recover Php 7.9 billion in under-recoveries. If approved, this would involve collecting an additional 22 centavos per kilowatt-hour (KWh) for 12 months. 

Of the amount, Php 6.4 billion is accounted for generation charges, while the remaining balance relates to transmission and systems loss, as well as real property taxes.

According to ERC, They will review the application to assess the recovery of pass-through costs implemented by the distribution utilities (DUs) and determine if any true-up adjustments are required.

The commission has recently revised the rules concerning the charging of pass-through costs to customers of distribution utilities (DUs) to ensure that power rates are fair and reasonable.

The ERC is currently assessing the applications to confirm that the automatic charging of pass-through costs aligns with the objective of providing fair and reasonable rates to customers.

The ERC also issued a reminder to the 20 distribution utilities (DUs) that did not meet the submission deadline, emphasizing that failure to fulfill the requirements within the given timeframe may result in the suspension of their authority to impose pass-through charges on customers. 

The agency had already granted an extension of 60 days for DUs in Luzon to file their applications, with the deadline set for May 30 of this year.