Meralco says its rates passed ‘stringent’ regulatory approvals
FILE PHOTO
MANILA, Philippines — Manila Electric Co. (Meralco) maintains that its current rates are subject to “stringent” regulatory approvals and reflect the cost of ensuring reliable electricity supply for its millions of customers.
The power distribution giant said so after its rates last year were compared to those of some electric cooperatives. According to the Philippine Rural Electric Cooperatives Association, its members’ rates were much lower than Meralco’s.
The Manuel Pangilinan-led firm said in a statement that given its extensive coverage, it needs to get its electricity supply from various sources. That is, just from coal, but also gas-fired power plants and renewable energy.
READ: Meralco slashes energy sales forecast for 2025
This, as supplies from coal-fired power plants are not sufficient to meet Meralco’s increasing demand, especially with the ban on new facilities.
About half of the power utility’s needs are sourced from gas-fired power facilities, it noted.
Diverse sources of electricity
Meralco said that its current power supply procurement strategy is in line with the government’s plan to use gas as a transition fuel. The Philippines hopes to scale up renewables’ share in the electricity generation mix.
The company pointed out that cooperatives, on the other hand, mainly tap coal facilities for most of their requirements.
Ronnie Aperocho, executive vice-president and chief operating officer of Meralco, said that while there may be areas with lower power rates, reliability could be an issue.
READ: Electricity rates in PH: Why are they high?
“At the end of the day, it’s a combination of price and reliability. I think we’re proud of the fact that we continue to build the reliability,” Aperocho told reporters earlier this week.
Further, Meralco said that its distribution charge was “one of the lowest among all distributors in the country.”
“We emphasize that Meralco fulfills its mandate and powers its entire franchise area without relying on taxpayers’ money and government funding. We remain committed to delivering service that balances affordability with long-term supply stability,” it said.
Meralco has over 8 million consumers. Its franchise area covers Metro Manila, Bulacan, Cavite, Rizal, and select areas in Pampanga, Laguna, Batangas and Quezon.
/rwd
