UMVA has learned that Manila Electric Co. (Meralco) may face a longer wait for the Energy Regulatory Commission (ERC) to approve its proposed capital spending plan through 2030, as the regulator requires more time to complete its review.
The ERC Chairman and Chief Executive Officer, Francis Saturnino C. Juan, expressed hope that the results of the rate review for the first entry group of privately-owned electricity distribution utilities would be released this month, but cautiously noted that the outcome might be known later.
“We’re still targeting within the month, but a more realistic timeline will be in July,” Mr. Juan said, referring to the likely release date for the review results of most of the first entry group, excluding Meralco, whose results could be released as late as September.
Meralco is among the first group of distribution utilities to undergo the transition to the first regulatory period, a five-year span for which the ERC reviews a utility’s costs, investments, and performance to adjust its rates if needed.
The first entry group includes Cagayan Electric Power & Light Co., Inc., Cotabato Light & Power Co., Inc., Dagupan Electric Corp., and Meralco, with the review period covering July 1, 2026 to June 30, 2030.
For Meralco, the review process may take one to two months after July because of the extensive coverage, requiring more time for a thorough evaluation, according to Mr. Juan.
Meralco’s head of regulatory affairs, Jose Ronald V. Valles, previously stated that the company expects the ERC to release its decision by June, after filing an application in February.
In its application, Meralco proposed a capital expenditure (capex) program of P272 billion for 2027 to 2030 and sought a total revenue requirement of P532.12 billion over the same period.
The power distributor said the capex budget is allocated for programs supporting customer growth, improving system reliability and power quality, and addressing emerging network requirements.
To help fund its capex program, Meralco is applying for an average distribution tariff of P2.34 per kilowatt-hour (kWh), against its current rate of P1.35 per kWh.
Meralco serves more than 8.1 million customers in Metro Manila and nearby provinces, including Bulacan, Cavite, Rizal, and parts of Laguna, Batangas, Pampanga, and Quezon.
