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Hike in net metering rates to raise power cost – Meralco
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Meralco ordered to refund nearly P14-billion to consumers
February 19, 2021 | 7:40 pm
Angelica Y. Yang
The Energy Regulatory Commission directed Manila Electric Co. (Meralco) on Friday to refund P13.89 billion in over-recoveries based on its actual weighted average tariff charges (AWAT) from July 2015 to November 2020.
This comes around two months after Meralco applied for the approval of its final refund scheme based on the calculation of its AWAT compared to the ERC’s approved interim average rate (IAR).
In a statement on Friday, the ERC said it had released the order for Meralco to refund P13.89 billion worth of its over-recoveries, which was equivalent to an average of PhP0.1528 per kilowatt-hour (kWh), in 24 months or until the amount has been fully returned to customers.
MANILA ELECTRIC CO. (Meralco) said Tuesday that the pending extension of the lifeline power rate subsidy will have no effect on the distribution utility, as the subsidy is paid for by all consumers.
On Monday, the Senate approved on third and final reading the bill that extended the lifeline subsidy rate for households consuming less than 100 kilowatt-hour (kWh) per month. If passed into law, the extension will run until 2031.
“Regarding the lifeline rate subsidy extension, Meralco will defer to the wisdom of the legislators. While the scheme benefits households who cannot afford to pay the full cost of electric service, their discounts are funded by other customers who have to shoulder the rate add-ons,” according to a quote provided by Meralco’s media relations office via Viber Tuesday, attributed to both the company’s Head of Corporate Communications Joe R. Zaldarriaga and Meralco Head of Utility Economics Lawrence S. Fernandez.
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