THE Energy Regulatory Commission (ERC) has adopted amendments to its resolution aimed at minimizing delays in the regulatory reset process for privately owned distribution utilities (DUs), focusing on Manila Electric Co.’s (Meralco) fifth regulatory period.
“This reset is essential to align distribution rates with operational realities and regulatory efficiency,” ERC Chairperson and Chief Executive Officer Monalisa C. Dimalanta said in a statement.
Ms. Dimalanta said addressing delays in the reset process is crucial to protect consumers and ensure that distribution utilities allocate their direct investments towards improving services.
The resolution will helping bridge regulatory gaps in rate-resetting timelines, the ERC said, noting that a number of years in Meralco’s original fifth regulatory rate process have lapsed pending resolution of legal challenges.
The ERC said the amendments center on Meralco’s fifth regulatory process but also set up guidelines to address similar delays encountered by other private DUs.
The rate reset process influences electricity charges and allows the power regulator to evaluate the performance of distribution utilities and ensure that consumers pay the right costs for power.
“By addressing these delays, we reaffirm our commitment to protecting consumers and ensuring that our distribution utilities direct their investments towards improved services in the changing energy landscape,” she said.
Under the Electric Power Industry Reform Act of 2001, or EPIRA, the ERC is tasked with establishing and enforcing a method for setting transmission and distribution wheeling rates for distribution utilities.
The Commission said it plans to issue additional amendments in the future to spell out timelines and processes to ensure streamlined implementation across the sector.
“These amendments are designed to recalibrate the rules to ensure timely resets while maintaining fairness and transparency,” the ERC said.
The ERC initially issued a regulatory reset order fixing Meralco’s fifth regulatory period at 2025 to 2028, instead of 2022 to 2026. — Ashley Erika O. Jose
