Meralco seeks distribution rate hike for 2012

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MANILA, Philippines - Manila Electric Co. (Meralco) is seeking higher distribution rates for next year on account of the company's capital spending requirements.

In a regulatory filing, the Philippines' biggest electricity distributor asked the Energy Regulatory Commission (ERC) for an adjustment in the company's maximum average price (MAP) for "distribution, supply and metering" to P1.63 per kilowatt-hour from the current P1.60.

Based on Meralco's proposal, residential customers with electricity consumption of up to 200 kilowatt-hours will shoulder a distribution charge of P1.20 per kilowatt-hour. Those using between 201 and 300 kilowatt-hours would be charged P1.55 per kilowatt-hour, while those consuming between 301 and 400 kilowatt-hours, P1.89 per kilowatt-hour.

Customers using 400 kilowatt-hours and above would be charged P2.48 per kilowatt-hour.  

Residential customers account for more than 90 percent of the utility's 5.07 million connections. 

Meralco's rate hike application is in accordance with the Performance-Based Regulation (PBR), which allows utilities to adjust their rates based on spending requirements, service performance, among others.

The ERC set the initial hearing for Meralco's rate hike petition on May 24 at 2:00 p.m. at the regulator's headquarters in Ortigas.

This year, the ERC lowered Meralco's distribution rate to P1.60 per kilowatt-hour from P1.65 previously after the regulator disapproved some of the company's programmed spending.

Also on Monday, Meralco announced the completion of several capital spending projects that would add capacity, strengthen the sub-transmission line backbone, improve switching flexibility and reduce technical system loss.

The completed projects are the following:

• Construction of a new feeder for Calamba Substation;
• Transfer of Calamba Substation's 115-kilovolt source to Canlubang-CIP2 Line;
• Construction of second 115-kilovolt line for CIP2 Substation; and the
• Installation of 33-megavolt-ampere backup power transformer.

Besides the completed projects, Meralco is also laying the groundwork for the following:

• Construction of second 115-kilovolt line source for First Philippine Industrial Park;
• Installation of additional 83-megavolt-ampere power transformer at Laguna Industrial Park;
• Construction of second 69-kilovolt line connecting Cruz na Daan and San Miguel substations; and the
• Installation of National Grid Corp. of the Philippines' additional power transformer.

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