Meralco gets nod to hike charges starting January

The Energy Regulatory Commission (ERC) has approved Manila Electric Co.'s (Meralco) petition to increase distribution, supply and metering charges. The regulator gave Meralco the go-signal to impose a 26.9-centavo hike to P1.4917 per kilowatt-hour (kWh) at the start of the year. But the regulator said it was optimistic the hike would be offset by the cut in the utility's other charges. "The ERC is optimistic that, notwithstanding the increase in Meralco's rates, the reduction in the other charges in the customers' total bill will be more than sufficient to mitigate or even offset the impact of this adjustment," ERC Executive Director Francis Saturnino Juan said. Under the scheme, residential customers who consume 200 kilowatt-hours (kWh) per month must pay P81.30 more, or a higher 40.54-centavo hike per kWh, assuming all other charges are unchanged. Lifeline consumers will continue to enjoy discounts under Meralco's lifeline program, which subsidizes poor consumers with monthly billings of 100 kilowatt hours or less. But in a separate statement, Meralco said generation charges would also drop starting January. "Based on estimates as of December 25, the generation charge is expected to go down by 26-27 centavos per kwh in January, continuing the downward trend exhibited since May 2009," the company said. Meralco external communications manager Joe Zaldarriaga said their customers could expect better and more reliable service. "This is our continuing commitment to our close to five million customers," he said. — GMANews.TV