THE Energy Regulatory Commission (ERC) has approved Manila Electric Co.’s (Meralco) P16.37-billion capital expenditure (capex) program filed nine years ago, allowing the utility to proceed with projects to expand and rehabilitate its distribution system, subject to cost review and verification.
In a choice dated April 30, the regulator authorized the implementation of the proposed capex program, which covers 100 projects under regulatory 12 months 2018 geared toward addressing customer demand, resolving operational deficiencies, and ensuring compliance with service performance standards.
“After an intensive evaluation of all of the evidence submitted, and appreciation of all the data gathered, the Commission finds that the implementation of the topic capex projects… will profit its consumers, in accordance with its obligation to offer continuous, secure, reliable, secure, and efficient service for its consumers,” the regulator said.
The ERC said the approved projects will likely be subject to review and adjustment based on actual usage and verified costs.
Meralco withdrew its highest-cost project, a P2.43-billion advanced metering infrastructure expansion, in 2022.
The facility distributor was also directed to pay the ERC a permit fee of P122.78 million.
Meralco is the country’s largest private electric distribution utility, serving greater than 8.2 million customers in Metro Manila and nearby provinces, including Bulacan, Cavite, Rizal, and parts of Laguna, Batangas, Pampanga, and Quezon.
Amid higher power costs linked to global oil price pressures, the ERC earlier directed Meralco to speed up the P19.96-billion refund to its customers.
The accelerated refund will likely be implemented over 12 months as a substitute of the unique 36-month schedule, leading to a median refund rate of P0.2511 per kilowatt-hour.
Meralco can be awaiting the choice of the ERC on its proposed refund of over P9 billion following a true-up calculation for the lapsed period in 2025.
Meralco’s controlling stakeholder, Beacon Electric Asset Holdings, Inc., is partly owned by PLDT Inc. Hastings Holdings, Inc., a unit of PLDT Helpful Trust Fund subsidiary MediaQuest Holdings, Inc., has an interest in BusinessWorld through the Philippine Star Group, which it controls. — Sheldeen Joy Talavera