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Advocates Philippines
ERC Approves Rate Adjustments For MERALCO's Gas Plants Starting October
Photo credit: Meralco
Hey there! If you’re a MERALCO customer, get ready for a change in your electricity bill starting this October. The Energy Regulatory Commission (ERC) has just given the green light for MERALCO to adjust its rates, thanks to some updates with the company's gas plants.
Here's the scoop: MERALCO has been granted permission to adjust its rates to cover the difference between old and new costs related to its gas plants. This adjustment stems from changes in the agreements with First Gas Power Corporation (FGPC) and FGP Corp. (FGP), specifically about how they handle Liquefied Natural Gas (LNG) and gas from the Malampaya field.
What Does This Mean for You?
Starting with your October billing, MERALCO will reflect these new adjusted rates. This is a result of the ERC’s decision, which came after a series of discussions and evaluations. Essentially, the costs MERALCO incurs from using LNG and other fuel sources are being updated, and they’ll be passed on to customers over the next year.
The Details
- ERC's Decision: The ERC has allowed FGPC and FGP to recover the difference in costs from using LNG versus the previously approved rates. MERALCO can now collect these costs over a 12-month period, beginning this October.
- Why the Change?: The adjustment is due to a Fuel Supply Force Majeure Event—essentially, a situation where the usual fuel supply was disrupted. This led to the need for LNG as an alternative fuel.
- Cost Breakdown: The new costs include not just the purchase of LNG but also its delivery, storage, and conversion to usable fuel. MERALCO will pass these costs on to you, but they have to be validated to ensure they’re accurate.
What’s Next?
The ERC will issue a formal order soon, but the notice is out now to ensure everyone is aware of the upcoming changes. So, keep an eye on your bills starting October and budget accordingly!
If you have questions or need more info, MERALCO’s customer service is a good place to start. They can help clarify how these changes might affect your monthly electricity costs.
Here's the scoop: MERALCO has been granted permission to adjust its rates to cover the difference between old and new costs related to its gas plants. This adjustment stems from changes in the agreements with First Gas Power Corporation (FGPC) and FGP Corp. (FGP), specifically about how they handle Liquefied Natural Gas (LNG) and gas from the Malampaya field.
What Does This Mean for You?
Starting with your October billing, MERALCO will reflect these new adjusted rates. This is a result of the ERC’s decision, which came after a series of discussions and evaluations. Essentially, the costs MERALCO incurs from using LNG and other fuel sources are being updated, and they’ll be passed on to customers over the next year.
The Details
- ERC's Decision: The ERC has allowed FGPC and FGP to recover the difference in costs from using LNG versus the previously approved rates. MERALCO can now collect these costs over a 12-month period, beginning this October.
- Why the Change?: The adjustment is due to a Fuel Supply Force Majeure Event—essentially, a situation where the usual fuel supply was disrupted. This led to the need for LNG as an alternative fuel.
- Cost Breakdown: The new costs include not just the purchase of LNG but also its delivery, storage, and conversion to usable fuel. MERALCO will pass these costs on to you, but they have to be validated to ensure they’re accurate.
What’s Next?
The ERC will issue a formal order soon, but the notice is out now to ensure everyone is aware of the upcoming changes. So, keep an eye on your bills starting October and budget accordingly!
If you have questions or need more info, MERALCO’s customer service is a good place to start. They can help clarify how these changes might affect your monthly electricity costs.
Aug 15, 2024
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