The Energy Regulatory Commisio (ERC) is exploring measures – including a three-month suspension of the collection of feed-in-tariff allowance (FITAll) – to temper the expected increase in power rates in Metro Manila.
Manila Electric Co.’s (Meralco) power rates are likely to go up by next year when it shall have finished refunding its customers by May.
Meralco’s three ongoing refunds total P1.33 per kilowatt hour (kWh) for residential customers.
“We are studying pending adjustments for over and under calculations. We monitor true up adjustments and their likely results… We hope that we may find something that can temper it,” said Monalisa Dimalanta, ERC chairperson, at the sidelines of an energy sector roundtable discussion in Pasig City, yesterday.
Dimalanta said at present, the only definite measure found by ERC to temper the pending rates increase is to suspend the collection FITAll.
FIT-All is sourced from all electricity consumers to pay the premium of FIT eligible power plants currently at 4 centavos per kWh. The government is allowed to evaluate the charge annually.
ERC is crafting a resolution suspending the collection of FITAll for three months targeted to be implemented as early as next month.
“It’s deliberated and we are crafting a resolution to suspend collection but to make sure we still are able to pay RE developers in full. We will monitor the monthly status of the fund as it currently has a pool for developers to still be paid,” Dimalanta said.
“If the resolution will be completed soon, we hope this will be implemented by December, January and February before we review it again. If the fund is still healthy, we can extend the suspension, if not, we will have to resume its collection after February,” Dimalanta added.
For power rates outside the Meralco franchise, ERC said it is reviewing power supply agreements between generators and electric cooperatives as well as private utilities, particularly on pass-on fuel charges.
Meanwhile, Dimalanta said the ERC also received a copy of petition for certiorari from San Miguel Corp. (SMC) filed at the Court of Appeals (CA), in relation to the regulatory body’s denial of the joint request by SMC and Meralco for a temporary power rate adjustment in view of fuel price spikes.
Dimalanta said the ERC received a copy of the petition on Monday.
ERC said under the petition, SMC is asking the CA to issue a temporary restraining order for the decision to be overturned.
