The Manila Electric Co. (Meralco) is set to file under recovery claims to the Energy Regulatory Commission (ERC) worth a total of P7.9 billion for years 2020 to 2022.
The company said the request can result in an estimated increase of 22 centavos per kilowatt hour (kWh) to power rates of its customers.
“Our proposal is to recover it over a period of 12 months. So, we have an estimated impact to customers of around 22 centavos per kWh but still dependent on the ERC’s approval with respect to the term if approved for a longer or shorter period,” said Ronald Valles, Meralco first vice president and head of regulatory management office, during a virtual briefing on Monday.
Valles said under recoveries happen primarily because of the lag between payment to generation companies and billing to customers.
Meralco said among billing components i in the under recoveries for the period include generation, transmission, system loss and real property tax, among others.
Meralco also said under ERC rules, distribution utilities in Luzon are required to file their over or under recoveries by March 31.
However, the company requested for extension to file until April 30 citing the “voluminous documents that needs to be prepared and validated.”
