The Energy Regulatory Commission has rejected increases in distribution rates sought by Manila Electric Co. that would raise power users’ bills by a total of 15.56 percent in the next four years, from the current P1.6464 per kilowatt-hour.
The ERC, in fact, trimmed Meralco’s rate by 3.8 percent to P1.5828 per kWh starting July and to P1.5817 per kWh by 2015.
In reaction to the ERC decision, a Meralco official said the distributor will review its capital spending for the period 2012 to 2015.
“We are studying whether we would cut spending… I don’t want to say that we will cut spending just because of a lower rate,” Rafael Andrada, Meralco treasurer, told Malaya Business Insight.
In the petition rejected by ERC, Meralco sought to increase its distribution charge to P1.7056 per kWh in 2012 (actually reckoned from July 2011 under the covered schedule) and rising to P1.9036 by 2015.
Read more at Malaya