Manila Electric Co., the Philippines’ largest power retailer, said the Energy Regulatory Commission ordered a reduction in its distribution rate, limiting an increase in total electricity costs this month.
The Energy Regulatory Commission ordered the company, also known as Meralco, to cut its maximum average distribution rate to 1.6012 pesos per kilowatthour from 1.6464 pesos, the Philippines’ largest power retailer said in a disclosure to the stock exchange. This distribution charge will be in effect at least until June 2012.
“The reduction in Meralco charges under performance-based regulation will mitigate the impact of a higher generation this October,” it said. The average increase of its private power suppliers’ rates was 31.6 centavos per kilowatthour and caused by more expensive liquid fuel, lower dispatch and the peso’s depreciation, Manila Electric said.