The inauguration of the National Grid Corporation of the Philippines Mariveles-Hermosa-San Jose 500kV transmission line in Barangay Balsik, Hermosa, Bataan on July 12, 2024. Niño Jesus Orbeta, PPA pool/File

MANILA – The Energy Regulatory Commission (ERC) said on Monday it aims to complete the rate reset for the National Grid Corporation of the Philippines (NGCP) by February and Manila Electric Company (Meralco) by June.

During the House Committee on Good Government and Public Accountability hearing, ERC Chairperson Monalisa Dimalanta gave an update following queries from lawmakers.

Dimalanta said the commission en banc already began deliberations on the NGCP's fourth regulatory period rate reset last month.

"Una naming tinalakay yung mga comments na nanggaling po sa stakeholders coming from the publication or posting of the draft. Pero hindi pa po namin tapos, mister chairman. Kasi madami pa pong comments nanggaling sa stakeholders so uupuan pa po namin uli ito next week. Hopefully, matapos ito namin within February para by March mismong nailabas na, naisulat na desisyon, mailabas na po ng first quarter," she said.

"Mailalabas first quarter po yung bagong rates and by the end of the year yung fifth regulatory period. Para po mas pumunta na tayo sa regular programming ng reset," she added.

Dimalanta cited the volume of comments they received that need to be analyzed on why they need ample time  for review.

"Maraming stakeholders natin yung nag-comment. May comment din siyempre yung NGCP. Iba-ibang aspeto ang kinomentan nila. Yung Transco may sariling set of comments, meron siyang portion ng NGCP returns na sinasabi ng Transco ay dapat mapunta sa Transco," she explained.

READ: SC says electricity generation still subject to ERC regulation

As for power distributor Meralco, Dimalanta said they expect to come up with a resolution on Meralco's fifth regulatory period rate reset by June.

"Meralco's rate reset naman po, hindi pa sila nagfifile. Dapat ngayong linggo sila magfile saka natin isasalang yun for public consultation. Pinal na desisyon ng commission doon na magfile sila for the fifth regulatory period by June. So hindi pwedeng pabalik-balik tayo sa issue na ito," she said.

Should Meralco fail to file an application for the fifth RP, the ERC Chairperson said they will use available data and records in their deliberations.

"Tatapusin po ng June para po makapasok ng July yung bagong rates. Yun pong binabanggit kanina na P1.35/kWh, kung matupad namin yung timeline at desidido naman po lahat ng komisyon, hanggang June nalang po yun. We will be moving forward with the proper rates," Dimalanta explained.

As for the other distribution utilities, the ERC chairperson said they hope to release the rules by this month so the timeline will be fixed.

"Yung sa electric cooperatives lang po hahabulin po namin. Kasi kulang po budget namin," she said.

When asked for comment on the possible impact of the entry of the Maharlika Investment Fund on the future rate reset of NGCP, Dimalanta does not see any changes.

"Wala naman kaming nakikitang epekto kasi nasimulan na natin ito since August 2022 diba? And utang natin sa consumers natin na makapag-reset. Yung pagpasok ng Maharlika sa state grid, hindi diresto sa NGCP, wala kaming nakikitang impact sa trabaho ng komisyon para mag reset ng rates," she said.

READ: Lawmakers flag NGCP's supposed violations, solon says firm complied

UPDATE ON MERALCO REFUND

ERC likewise gave update on the P19 billion refund offered by Meralco covering overrecoveries from July 2022 to December 2024.

The commission earlier ordered Meralco to file for refund for the lapse period when there was no reset of its actual weighted average tariff or AWAT.

Meralco's proposal seeks to implement the refund for 3 years, credited to the bill of its customers.

READ: Meralco rates down, water rates up in January

"Nag-apply sila ng refund January 28 or 29… Ine-evaluate na ito ng aming technical staff and legal staff para po as early as March 1 ito yung takdang araw na pwede na naming ma-aksyunan yung application nila ay mabilis tayong makapag-aksyon doon sa panukala nilang refund," Dimalanta said.

The ERC Chairperson cited the implementing rules and regulations of the Electric Power Industry Reform Act or EPIRA that prohibits the commission from acting on a rate application within 30 days of filing.

"Pinaka maagang maaksuynan natin ito March 1. So tamang tama pagpasok ng summer months, maramdaman natin yung impact ng refund," she added.

Former ERC Commissioner Alfredo Non earlier said the P19 billion refund proposal of Meralco is not enough of what it needs to return consumers.

He underscored the importance of ERC's determination of Meralco's final average rate which is currently P1.35 kWh. Non said the rate has not been reset since 2012.

"Kasama sa evaluation naman natin yun kung sapat na ba yung inalok ng Meralco na refund. In fact, overcollection kasi ito. So titingnan natin sa computation ng commission kung may kailangang idagdag na amounts dito," Dimalanta said.  

She said all consumers in the Meralco franchise area stand to benefit from the refund.

Under Meralco's petition, residential consumers will be refunded P0.19/kWh, while the average amounts to P0.11/kWh over a three year period.

The former ERC official has filed a case on the matter at the Court of Appeals.

Earlier in the hearing, lawmakers questioned the ERC for spending millions in consultancy services for rate reset, only to not follow the reports.

In response, the ERC said they are some reports they used for the fourth and fifth regulatory periods of NGCP.

Lawmakers urged ERC to complete the long overdue reset to avoid impacts on projects and cost of electricity rates, especially in the provinces.