ICERA stands for Incremental Currency Exchange Rate Adjustment. It is an ERC-approved adjustment mechanism that allows the National Power Corporation (NPC) to more accurately reflect costs affected by foreign exchange rate fluctuations.
In May 2018, MERALCO began implementing the ICERA in the form of a refund, as ordered by the Energy Regulatory Commission (ERC). The refund covers NPC costs incurred between July 2009 and April 2010 and is administered by the state-owned Power Sector Assets and Liabilities Management Corp. (PSALM).
All electricity consumers nationwide are eligible to receive the ICERA refund. For Meralco customers, those who are currently active AND were already customers of Meralco between July 2009 and April 2010 will receive the refund.
Thus, not all Meralco customers will receive the refund. For example, the refund will not be applicable to a customer whose electric service only began in May 2010.
The refund rate is approximately 0.4 centavos per kWh, plus associated taxes, initially based on eligible customers’ January 2018 kWh consumption.
In accordance with the ERC’s Order, the implementation is for a period of 60 months, starting February 2018. However, since implementation is effective May 2018, the total refund credited to May 2018 bills covers 4 months’ worth of ICERA refund. Beginning with June 2018 bills, the refund credit will normalize and be equivalent to 1 month’s worth.