Manila Electric Co. (Meralco), a power distribution utility, plans to keep its system losses below the cap set by the Energy Regulatory Commission.
Meralco Chief Operating Officer Oscar S. Reyes told the Business World that they are hoping to continue at levels below the regulatory cap of 8.5%. "Anytime we’re below that, that translates into savings for the customers. Our target is to remain below 8.5% and continue to be at record levels," Reyes added.
Presently, the utility is working at record low levels for system loss at 7.78% of total energy supplied. The Energy Regulatory Commission has reduced the system loss cap to 8.5% from 9.5% in 2010.
The cap is the limit beyond which a distribution utility may no longer recover transmission losses through power lines or pilferage from customers.
In 2009, Meralco suffered a system loss of 8.61%.
The utility also plans to purchase subtransmission assets in Batangas. Meralco utility economics head Ivanna G. de la Peña earlier said the company was in talks with electric cooperatives in Batangas to determine how to jointly own subtransmission assets in the area.