Clark Electricity Distributor Seeks Approval of Price Hike
CLARK ELECTRIC Distribution Corp. (CEDC), a unit of Manila Electric Co. (Meralco), has sought regulatory approval of a new distribution rate for next year.In a notice of public hearing published on Saturday, the Energy Regulatory Commission (ERC) said CEDC has sought authorization for its maximum average price for regulatory year 2014 and the corresponding average distribution rate of P0.8462 per kilowatt-hour (/kWh).
The notice showed that the average rate involves a distribution charge of P0.7666/kWh; supply charge of P0.0389/kWh; and metering charge of P0.0406/kWh.
Should ERC approve the petition, residential customers will have to pay an average of P0.92/kWh for the distribution rate component of their power bills. Small commercial customers will pay P0.78/kWh, while industrial users will pay P1.20/kWh.
The notice said the regulator’s approval will enable CEDC “to implement in a timely manner its capital expenditure program and its operating and maintenance program…and allow it to avoid irreparable losses, which will ultimately result in the deterioration of its services, in damage and prejudice to the public, in general, and its customers…”
Comparison between the new rate sought by CEDC and the prevailing one was not immediately available.
CEDC is the sole electric distribution company serving Clark Economic Zone and Free Port in Pampanga.
The utility, which provides electrical services to more than 1,000 — mostly industrial — customers, is a joint venture of Angeles Electric Corp. and Meralco Industrial Engineering Corp., a wholly owned subsidiary of Meralco.
Meralco — the country’s largest power distributor — provides electricity in Metro Manila, Bulacan, Cavite and Rizal as well as parts of Batangas, Laguna, Quezon and Pampanga.
Meralco’s net income dropped 3.2% to P9.441 billion in the first half from P9.752 billion in the same six months last year.
In the same comparative periods, revenues slipped 1.3% to P141.697 billion from P143.6 billion, while costs and expenses dropped 3.5% to P128.961 billion from P133.603 billion.