Utility giant Manila Electric Company (Meralco) is applying for a new rate hike of P0.1547 per kilowatt hour (kWh) to update its tariffs to P1.6464 per kWh for regulatory year 2011 from the approved rate of P1.4917 per kWh this 2010.

The implementation coverage of the company’s proposed tariff for next regulatory year, as proposed to the Energy Regulatory Commission (ERC), shall be from July 1, 2010 to June 30, 2011.

The utility firm, in particular, prayed that it be granted a provisional authority for its rate hike bid so it would be able “to implement in a timely manner its capital expenditure program and address its operating and maintenance requirements for the Second Regulatory Period, particularly for  Regulatory Year 2011, and avert financial prejudice, both to (Meralco) and its customers.”

It added that “it is a necessary that a Provisional Authority be immediately issued authorizing the Applicant to implement the new rates pending hearing on the merit of the instant application.” In the filing, Meralco indicated that its calculated maximum average price (MAP) for 2011 as referenced on the Rules for Setting Distribution Wheeling Rates (RDWR) should have been at P2.6493 per kWh; but side constraint provisions reduced the level of average tariff that shall be passed on to its customers.

“To prevent price shocks to consumers, the updated RDWR imposes side constraints on the maximum wheeling rates… applying the side constraint condition, the allowable MAP for 2011 will become P1.6464,” the utility firm has stated in the application.

It emphasized that the average rate’s breakdown will cover: P1.0980 per kWh for distribution charge; P0.3358 per kWh for supply charge and P0.2126 per kWh for metering charge.

The supply and metering charges of P0.6349 per kWh and P0.4546 per kWh, respectively, are uniform for all residential customers; including the fixed supply charge of P21.12 per customer and fixed metering charge of P7.13 per customer.