48 power distributors in Luzon submit applications for rate adjustments
48 power distributors in Luzon submit applications for rate adjustments
48 power distributors in Luzon submit applications for rate adjustments
by Mhillen Nicole Borja21 June 2023
Photo Courtesy: Getty

Electricity consumers in Luzon should prepare for an imminent increase in their electric bills rates as major power distributors, such as Manila Electric Co. (Meralco), initiate the process of seeking rate adjustments.

The Energy Regulatory Commission (ERC) released a statement on Tuesday, revealing that 48 distribution utilities (DUs) have submitted applications for automatic cost adjustment and true-up.

Additionally, 20 other DUs are yet to file their applications.


Meralco, in particular, has requested approval from the ERC to collect a total of P7.9 billion to cover under-recoveries. If approved, this would entail collecting an additional P0.22 centavos per kilowatt-hour over a period of 12 months.

The requested amount consists of P6.4 billion in generation charges, with the remaining balance attributed to transmission and systems loss, as well as real property taxes.

In its statement, the ERC emphasized that it will evaluate the applications to ensure the recovery of pass-through costs by the DUs and verify the true-up of other pass-through charges.

"The Energy Regulatory Commission (ERC) received applications for automatic cost adjustment and true-up mechanisms for the period 2020-2022 from 48 Distribution Utilities (DUs) in Luzon. The filing was made pursuant to Resolution No. 14, Series of 2022," the statement read.


"The applications will be evaluated by the ERC to validate the recovery of pass-through costs implemented by the DUs and confirm the true-up of other pass-through charges, if any," it added.

Furthermore, the regulatory agency issued a reminder to the 20 DUs that failed to submit their required applications within the prescribed timeframe.

The deadline for Luzon-based DUs was extended by the agency to a period of 60 days, which ended on May 30 of this year.

The following are the DUs that still need to submit their applications:

  • Abra Electric Cooperative Inc.
  • Albay Electric Cooperative Inc.
  • First Bay Power Corp.
  • First Laguna Electric Cooperative Inc.
  • Ibaan Electric Corp.
  • Ilocos Norte Electric Cooperative Inc.
  • Isabela I Electric Cooperative Inc.
  • Isabela II Electric Cooperative
  • Kalinga-Apayao Electric Cooperative Inc.
  • Masbate Electric Cooperative Inc.
  • Nueva Ecija I Electric Cooperative Inc.
  • Nueva Vizcaya Electric Cooperative Inc.
  • Oriental Mindoro Electric Cooperative Inc.
  • Pangasinan I Electric Cooperative Inc.
  • Pampanga II Electric Cooperative Inc.
  • Quirino Electric Cooperative Inc.
  • San Fernando Electric Light & Power Co. Inc.
  • Ticao Island Electric Cooperative Inc.
  • Zambales I Electric Cooperative Inc.
  • Zambales II Electric Cooperative Inc.


The ERC emphasized that failure to comply with the requirements within the given timeframe may lead to the suspension of the authority of these DUs to impose pass-through charges on consumers.

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