ERC approves power rate hike in 3 tranches

MANILA, Philippines - The Energy Regulatory Commission (ERC) approved on Monday the option of spreading the power rate increase by electric firm Manila Electric Company (Meralco) in three months to cover the maintenance cost of power plants.

The ERC has approved the three-tranche option after a hearing at its office in Ortigas, Pasig City.

The first tranche of the power hike will be implemented this month with P2.41 per kilowatt hour added to the monthly electric consumption while the second tranche will be January 2014 with P1.21 kw/h.

The last tranche will be on February next year at P0.53 kw/h, reports added.

Bayan Secretary General Renato Reyes, Jr. said the new Meralco power rate hike scheme is still unacceptable.

"It is still premised on automatic recovery without any form of public scrutiny. The new generation rate for December will increase by a hefty P2.41/ kwh," he said.

"Consumers using 200kwh will pay an additional P540 if we include the VAT (vallue added tax). The deregulation and privatization of the power sector has truly placed the consumers at the mercy of profit-hungry power firms," Reyes said.