Meralco rate hike looms due to under-recoveries

MANILA, Philippines –  Households in Metro Manila and nearby provinces may have to brace for another round of electricity rate hike as the Manila Electric Co. is seeking to collect P18 billion in under-recoveries through a rate adjustment.

Meralco said these so-called under-recoveries would be tucked in its rate hike petition with the Energy Regulatory Commission (ERC).

“This (under-recovery) was due to delays in the implementation of rate adjustments and side constraints which capped the amount of rate adjustments,” Meralco head of utility economics Ivanna dela Peña said.

Meanwhile, Government Watch, a newly formed consumer group, called on consumers to closely monitor their electricity bills.

“We are encouraging consumers to check their electric bills from their distribution utilities like Meralco, VECO, Davao Light, PECO, SFELAPCO, Angeles Electric, DECORP, Tarlac Electric, CEPALCO, Subic Enerzone and Clark Electric,” industrialist Raul Concepcion said. Government Watch has replaced the Consumer and Oil Price Watch.

Meralco has around 4.8 million customers in its franchise areas.

Any delay in the implementation of rates approved under the PBR results in under-recoveries.

“The delay in implementation of the PBR makes it more expensive for consumers,” Dela Peña said.