MERALCO’s expanded time-of-use scheme approved


Zenaida G. Cruz-Ducut,
Chairperson, ERC
Manila, Philippines — (METERING.COM) — January 4, 2010 – An expanded time-of-use scheme for the Manila Electric Company’s (MERALCO) has been approved by the Energy Regulatory Commission (ERC) with the aim of giving more consumers the option to choose TOU billing.

To widen the number of consumers that will benefit under the TOU scheme, MERALCO requested a reduction of the threshold from 750 kW to 5 kW for industrial/commercial customers and from 2,000 kWh to 500 kWh in monthly consumption for residential customers.

This reduction will not in any way benefit MERALCO but will instead benefit consumers and will support the objective of implementing the TOU program to the fullest, said the ERC in a statement.

“Under this modified TOU scheme, customers shall experience price differentiation between peak and off-peak and their electricity costs will depend on their particular demand curve. Ultimately, consumers shall enjoy the benefit of lower electricity prices if they could shift consumption to off-peak periods,” said ERC chairperson Zenaida G. Cruz-Ducut.

Peak hours during weekdays are from 8:01 a.m. to 9:00 p.m. and from 6:01 p.m. to 8:00 p.m. during Sundays. Electricity consumers will thus enjoy off-peak rates for 11 hours during weekdays and 22 hours during Sundays.

The shifting to the TOU scheme will, however, entail installation costs and the ERC also authorized a one-time application fee and additional monthly metering and supply charges that MERALCO can collect from customers who choose to be billed under the TOU scheme.