December 10, 2013

ERC approves Meralco rate hike in tranches

The Energy Regulatory Commission has reportedly agreed to a phased implementation by Meralco (MER, Buy) of a rate hike to pass on higher generations charges. BusinessWorld reported that MER will implement the P4.15/kWh rate hike in three tranches: P2.41 per kWh in December, P1.21 in February and P0.53 in March.

This is to ease the immediate impact on consumers and amid protests by consumer and other advocacy groups. The higher generation charges stemmed from the shutdown of the Malampaya gas field from 11 Nov-10 Dec which reportedly prompted Meralco’s supplier power plants using natural gas to source more expensive power from the spot market. - WealthSec