ERC: MORE Power system loss at 6%

By Lenie Lectura – September 1, 2020
from Business Mirror

The Energy Regulatory Commission (ERC) said it has verified the system loss report submitted by More Electric and Power Corporation (MORE Power).

“Per the monthly report we have, MORE Power is only charging 6-percent system loss,” said ERC commissioner Rexie Digal in a text message Tuesday. The report that was submitted and verified by the ERC was for June this year.

System losses refer to the cost of electricity that was either lost in transmission through power lines or pilfered. These losses are passed on to consumers up to a certain percentage or up to the so-called system loss cap–the limit beyond which a utility is no longer allowed to recover from its customers the cost of electricity.

MORE Power’s 6-percent system loss is below the 6.5-percent system loss cap imposed by the ERC.

All DUs are required to submit their system loss reports every month. Digal said the commission regularly monitors the DUs’ compliance.

“The rule is they cannot recover beyond the cap. If they do, then we will be able to verify that, subject them to show cause order and impose penalties, if ever, after due process,” added Digal.

The ERC earlier issued a resolution that effectively brings down the DU’s system loss cap to 6.5 percent and further to 5.5 percent by 2021.

“The lowering of the system loss cap is a move to bring down the power rates and help electricity consumers mitigate the impact of rising costs of commodities and services. This will encourage DUs to improve their distribution system and facilities so that they adhere to the newly-prescribed system loss cap,” said ERC Chairman Agnes Devanadera.

The system loss of Iloilo City’s former distribution utility Panay Electric Company (PECO) had reached 9.93 percent, the highest among all private DUs in the country. PECO’s generation charge was also highest then at P2.50 per kilowatt hour.

MORE Power has committed to its 65,000 Iloilo power customers that it will continue to bring down its systems loss within the next three years as it implements its P1.8-billion modernization program.

A high systems loss rate could be due to pilferage through “jumpers” or illegal connections. MORE Power earlier disputed allegations that its system loss reached 7.1 percent.