P14-b Meralco deal to raise power rates

A court declared the P14-billion settlement agreement between Meralco and Napocor valid, which could increase the electricity bill of Meralco consumers P0.12 per kilowatt-hour .

The presiding judge stated that the decision was “independent of the pass-through provision” that would result in additional power charges to Meralco’s consumers.

“The court did not rule on the pass-through provision under the settlement agreement as the same is reserved for the approval of the ERC where the case is currently pending,” the ruling said.

Energy Regulatory Commission executive director Francis Saturnino Juan said Meralco might still have to wait for the final decision of the Pasig City court because of a possible appeal.

“After that, [Meralco] can go back to ERC to resolve their petition to allow the recovery of the settlement amount,” Juan said.

In its agreement with Napocor, Meralco was required to pay a minimum monthly charge, even if the actual volume of power it bought from Napocor fell below the minimum quantities.

Meralco from 2002 to 2004 drew less supply than the minimum stipulated by the contract. Meralco merely paid for the supply it actually received instead of the minimum monthly charge.

Napocor field a claim against Meralco to include contracted but undrawn energy starting in the billing month of January 2002.

Meralco objected and served a notice of termination of the contract, claiming that it suffered losses from the delay in the construction of Napocor’s transmission lines. The delay prevented Meralco from fully supplying electricity contracted with independent power producers. Meralco also cited unrealized revenues as Napocor directly supplied electricity to customers in violation of retailer’s franchise.

https://business.manilastandardtoday.com/2012/06/02/p14-b-meralco-deal-to-raise-power-rates/