Customers of Meralco to pay increased rates starting April

Customers of Manila Electric Co. (Meralco) will pay more for electricity starting April after the Energy Regulatory Commission (ERC) approved changes to the utility’s distribution rate structure. Meralco, the Philippines’ largest power distributor, was allowed to hike rates by 26.47 centavos per kilowatt-hour (kWh) — a 22-percent increase — to an average P1.4917 per kWh. The rate hike was supposed to have taken effect last January, but was voluntarily suspended by Meralco pending hearings on a complaint filed by a customer. "The target is April," Meralco spokesman Joe Zaldarriaga said in a telephone interview on Wednesday, referring to when the rate increase will take effect. Under the ERC order dated March 10, distribution, supply, and metering charges will rise across the board. The regulator did not announce the decision. It was Meralco which announced the ruling through a disclosure submitted to the Philippine Stock Exchange on Wednesday. Household consumers consuming 200 kWh or less a month must pay 85.47 centavos per kWh from the current 69.17 centavos for the distribution charge alone. This means a household that uses up to 200 kWh per month will be charged P32.60 more. The supply charge will also jump to 58.32 centavos per kWh from 47.20 now for residents consuming at least 200 kWh a month. The metering charge, meanwhile, will go up by 7.96 centavos to 41.76 centavos per kWh. Likewise, those consuming 201 to 300 kWh, 301 to 400 kWh, and over 401 kWh must pay P1.2298, P1.5836, and P2.1998 per kWh, respectively. The new rates are 23.45 centavos, 30.2 centavos, and 41.95 centavos higher than current charges. Meanwhile, industrial and nonindustrial clients will pay 2.59 centavos per kWh from 2.10 centavos for the distribution rate; P164.96 more to P864.96 for the supply charge; and P84.83 more to P444.83 for the metering charge. Rate ‘distortion’ In its March 10 decision, the ERC removed all rate distortions indicated in a complaint by customer Roberto G. Mallillin, who is reportedly a consultant of San Miguel Corp. and the Philippine Chamber of Commerce and Industry. This effectively resulted in higher increases for residential customers of the utility. The commission also agreed with Mallilin’s proposal for Meralco to remove "intra-class subsidy" among residential customers of the utility starting next year. The regulator approved the tariff increase last December, the second price hike secured by the listed power distributor last year. Regulators allowed Meralco to raise tariffs by as much as 27 percent in May last year, its first price increase since 2003. But Mallillin disputed the supposed distortion in the rate scheme favoring residential customers, forcing Meralco to suspend the increase last January pending hearings on the case. In a January 8 motion, Mallillin questioned Meralco's rate structure, where industrial and commercial clients are charged more than residential customers. Mallilin said Meralco was trying to cushion the increase for residential consumers by assigning more increases to the commercial and industrial sector. — with Norman P. Aquino/RJAB Jr., GMANews.TV