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ACRM Charge

ACRM Charge

1.       What is ACRM?

ACRM stands for Automatic Cost Recovery Mechanism. It is an ERC-approved adjustment mechanism that allows the National Power Corporation (NPC) to more accurately reflect costs affected by fuel, purchased power cost and foreign exchange rate fluctuations. Meralco does not earn from this recovery.

Effective June 2018, Meralco will begin implementing a recovery, as ordered by the Energy Regulatory Commission (ERC). The recovery covers NPC costs incurred between March 2010 and December 2013 and is administered by the state-owned Power Sector Assets and Liabilities Management Corp. (PSALM).

 

2.       Who will be billed with the ACRM charge?

The ACRM recovery will apply to all electricity consumers nationwide. For Meralco customers, this covers those who are currently active AND were already customers of Meralco between March 2010 and December 2013.

Thus, not all Meralco customers will be billed.  For example, the recovery will not be applicable to a customer whose electricity service only began in January 2014.

 

3.       How much is the ACRM recovery? How is it computed?

The recovery rate per month is approximately 2.45 centavos per kWh, plus associated taxes, initially based on eligible customers’ January 2018 kWh consumption.

 

4.       When or how long is the implementation?

In accordance with the ERC’s Order, the implementation is for a period of 60 months, starting February 2018. However, since implementation is effective June 2018, the total recovery charge on June 2018 bills consists of February to May 2018 ACRM charges. Beginning with July 2018 bills, the ACRM charge will normalize and be equivalent to 1 month’s worth.

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