Meralco’s rate increases
| C.R.O.S.S.R.O.A.D.S |
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| Jonathan De la Cruz |
Concerned citizens are asking Energy Secretary Jose Rene Almendras and ERC Chairman Zeny Ducat to reject the petition for another round of rate increases by Meralco for its so-called distribution, supply and metering (DSM) charges.
The country’s largest power distribution utility which covers a franchise area comprising 23 cities, 88 municipalities and 4.8 million customer connections with a resident population of 19 million and counting, has asked for an increase of P0.41 per kilowatt hour in its DSM charges from the current P1.4917/kwh set just a year ago last May 2009 to P1.9036/kwh by 2015. As noted by the oppositors headed by a certain Genaro Lualhati and the pro-consumer Nasecore led by Pete Ilagan, this P0.41 increase being worked out under the ERC’s newly instituted tranching scheme called Performance Based Regulation (PBR) is no pittance at all, if one considers that for every one centavo increase in Meralco’s rate this translates into a gross revenue of P360 million per year based on its present annual sales of 36 billion kilowatt hours. Thus, that 40 centavo increase translates into a whooping P14.4 billion a year additional revenue for Meralco!.... MORE
Source: The Daily Tribune
URL: http://www.tribuneonline.org/commentary/20101028com5.html
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