"This (ERC decision) will indicate sincerity of the government to keep Meralco viable. That regulatory decision will be the test of that (sincerity)," Meralco president Jesus Francisco said.
Meralco is asking for a P1.12 increase per kilowatthour (kWh) in its rate as soon as it itemizes its rate. The company included in its unbundling petition a 30-centavo rate increase in its basic rate.
ERC acting chairman Leticia Ibay, on the other hand, said the decision on Meralco’s unbundling rate application will be moved by another week.
Ibay earlier said the ERC set an internal target of end-February to come up with the decision on the controversial unbundled rate petition of Meralco.
"We cannot come up with the decision yet. The Meralco lawyer filed his comment on the offer of exhibits by oppositor, hence oppositor counsel will be given five more days from receipt to comment on it,"she said.
In its previous unbundling decisions, ERC, instead of granting a rate increase, slashed the power distribution firms’ rates. The National Power Corp. (Napocor), for instance, applied for a rate increase of 17 centavos per kWh. But ERC ruled for Napocor to lower its rate by seven centavos.
Last December, the government, through the Department of Energy (DOE committed to assist Meralco in resolving its financial dilemma brought about by the recent Supreme Court decision, which ordered the power firm to refund its customers some P28 billion.
"We have had initial discussions with senior officials of QPPL (Quezon Power Philippines Ltd.) and FGPC (First Gas Power Corp.) to provide some flexibility to Meralco with regard to the payments of purchased electricity. They are aware of the financial situation of Meralco, however, the IPPs have yet to make any commitment yet," Energy Secretary Vincent S. Perez said.
Meralco has a power purchase agreement for a 440-megawatt (MW) supply of electricity with QPPL and another 1,500-MW power supply contract with FGPC.