ERC slashes Meralco's distribution rate

Power distributor Manila Electric Co. on Friday disclosed that the Energy Regulatory Commission has slashed its distribution, supply and metering rates for year 2012. In a statement to the Philippine Stock Exchange, Meralco said the decision of the Energy Regulatory Commission mandated the company to reduce its combined distribution, supply and metering rates to P1.5828 per kilowatt hour, 6.36-centavos lower than the prevailing Maximum Average Price, for the regulatory year 2012, which will cover July 2011 to June 2012. Meralco also said that the ERC ruling determined that its "rates will then remain stable for the remainder of the 3rd regulatory period, which will be up to June 2015." "We will have to work within the approved expenditure levels while maintaining our service commitments to our customers," said Ivanna dela Pena, Meralco's head for Regulatory Management. The ERC also approved a P37.2-billion capital expenditure program for Meralco for July 2011 to June 2015. "The ERC disagreed with a number of our project proposals and imposed more stringent performance standards for the company. Nonetheless, we remain unrelenting in our commitment to provide reliable and efficient electric service at affordable to our customers," said dela Pena. For the year's first quarter, Meralco said its earnings improved six percent to P2.1 billion, boosted by rate adjustments it had implemented. -- CMA/OMG, GMA News