The Energy Regulatory Commission (ERC) has set completing the rate reset reviews for both NGCP and Meralco as top priorities for the first half of 2025.
The Energy Regulatory Commission (ERC) has prioritized the completion of the rate reset review for system operator National Grid Corp. of the Philippines ( NGCP ) and the lapsed period rate refund of Manila Electric Co. (Meralco) within the first semester of 2025. ERC Chairperson Monalisa Dimalanta stated that after addressing NGCP and Meralco, the ERC will move on to other private distribution utilities.
The rate reset process is intended to be forward-looking, requiring entities to submit projected expenditures and proposed projects for a five-year regulatory period. However, applications from NGCP and Meralco have accumulated over the years. The ERC is yet to finalize NGCP’s 4RP, covering 2016 to 2021, which is being concurrently reviewed alongside NGCP’s 5RP application for 2021 to 2025. The ERC released a final draft of NGCP’s 4RP in November 2022, proposing an allowable revenue of P310 billion, significantly lower than NGCP’s P522 billion application. NGCP President Anthony Almeda has urged the ERC to make a decision, emphasizing the company’s need for clarity. Meanwhile, the ERC also aims to resolve Meralco’s lapsed period rate refund, potentially worth P16 billion, and complete Meralco’s 5RP reset. Delays have also plagued Meralco’s application approvals, leading to the ERC recently redefining Meralco’s 5RP to cover 2025 to 2028, replacing the initial 2022 to 2026 period
ENERGY REGULATORY COMMISSION NGCP MERCADO RATE RESET UTILITIES
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