THE Energy Regulatory Commission (ERC) said it made “some modifications” to its pending ruling on the fifth regulatory reset of Manila Electric Co. (Meralco), though it gave no further details.
ERC Chairperson and Chief Executive Officer Monalisa C. Dimalanta said at a virtual briefing on Monday that the changes to the ruling follow input from legislators.
“The Commission, I understand, has decided to revisit this matter and has made some modifications,” Ms. Dimalanta, did not identify the specific modifications but said that the commission is hoping to issue its decision within the year.
“There is a modification on that (rate reset) in response to the sentiments already articulated in the Senate and also reported by media with respect to that budget hearing,” Ms. Dimalanta said.
She confirmed that a decision to forego the rate reset for the 5th regulatory period (5RP) was made before she was suspended in August.
During a Senate budget hearing, ERC Commissioner Catherine P. Maceda said that the commission decided to forego the regular regulatory reset process on the expectation that it will not be completed until 2026.
Senator Sherwin T. Gatchalian said that there should not be “double standards” when it comes to the rate reset process.
“We have to apply the same rules to Meralco. So I don’t agree that we should forego the reset of Meralco because we did it for NGCP (National Grid Corp. of the Philippines), which is a much more complex utility — it’s nationwide,” he said.
“In terms of market power and being a natural monopoly in the NCR (National Capital Region) and the adjacent areas, (Meralco) has to undergo a rate reset as well,” he added.
In March 2022, Meralco filed its application for the fifth regulatory period, which spans from July 1, 2022 to June 30, 2026.
The rate-rest process is usually a forward-looking exercise that requires the regulated entity to submit forecast expenditures and proposed projects over a five-year regulatory period for the ERC to review and adjust.
Under the Electric Power Industry Reform Act of 2001, or EPIRA, the ERC is tasked with establishing and enforcing a methodology for setting transmission and distribution wheeling rates for a distribution utility. — Sheldeen Joy Talavera