Manila Electric Co. filed an application with the Energy Regulatory Commission for approval of its proposed total annual revenue requirement (ARR) amounting to P393.178 billion for the 5th regulatory period from 2026 to 2029.
Meralco said in its application the annual revenue requirement would be composed of operating and maintenance expenditure; taxes, levies and duties; regulatory depreciation, return on capital and efficiency carry over.
The power retailer set its proposed ARR for 2026 is P81,847,798,626; 2027, P92,987,084,559; 2028, P103,914,116,861; and 2029, P114,618,979,078.
Meralco said the proposed ARR is partly based on a proposed weighted average cost of capital of 14.6 percent.
Meralco’s calculations considered the recommendation of NERA Economic Consulting Inc., a global economic firm which conducted a study on the matter. The company said its ARR is based on a proposed rolled-forwarded value of its regulatory asset base, which is still subject to review by the ERC.
