Meralco Q1 system loss at record low

Manila Electric Co. (Meralco) posted a record-low system loss of 7.62 percent in the first quarter of 2011, the power distributor has disclosed to the Philippine Stock Exchange. Meralco said the system loss improved by 0.59 percentage points from the figure it registered in the same period in 2010. Systems loss refers to the total energy lost or wasted due to technical or non-technical factors such as theft or pilferage. “The steady improvement in system loss is attributable to the continuing institutionalization of loss-reduction activities, improved pilferage management, grassroots partnership with local government units within the franchise area, and resettlement programs implemented by the national government for informal settlers," the company said. Oscar Reyes, Meralco senior executive vice president and COO, said the company aims to keep its system loss lower. Reyes had earlier said Meralco targets to keep its system loss below 8.5 percent. “Our last system loss was at 7.78 percent and hopefully we can continue to beat record levels. We're now at a 37-year record since 1974," Reyes said. The company recorded a system loss of 9.28 percent and 8.61 percent in 2008 and 2009, respectively. “We're hoping to continue to sort of be at levels below the regulatory cap of 8.5 percent. Any time we're below that, that translates to savings for the consumers, since we don't pocket it. Whatever we save translates to lower rates for the customers," he said. Meanwhile, Meralco said it will charge lower electric bills in May after it slashed its generation charge by 3.13 centavos per kilowatt hour. -- PE/OMG, GMA News