Question & AnswerQ&A (LETTER OF INSTRUCTION NO. 15)
Letter of Instruction No. 15 concerns the reduction of the provisional rate increase granted to MERALCO from approximately 36.5% to 20.9% as ordered by the Public Service Commission (PSC).
The Presidential Economic Staff (PES) and the Board of Investments (BOI) submitted recommendations on the rate adjustment of MERALCO.
The Department of Public Works and Communications is instructed to immediately take steps to implement the reduction in MERALCO's provisional rate increase and to require MERALCO to submit a revised rate schedule within 24 hours for presidential approval.
No, the provisional rate increase was not to be implemented across the board; residential consumers with monthly consumption of 90 kilowatt-hours or less and some other groups were not affected.
Upon the organization of the Board of Power and Waterworks, the board is tasked to conduct public hearings to make the final determination of the rates to be allowed MERALCO.
The PSC ordered the full amount of increase petitioned by MERALCO without a preliminary determination of the warranted amount.
The PSC ordered that if it is found that MERALCO is not entitled to the increased rates or entitled to lower rates, all sums collected by reason of the provisional authority granted shall be refunded or credited to customers' accounts.
The Letter of Instruction amends the PSC order by reducing the provisional rate increase and making it clear that the full 36.5% increase is not to be applied but only approximately 20.9%.
It allows the government to quickly review and approve a rate schedule that conforms to the new provisional rate increase caps and ensures timely implementation of the instructions.