The Energy Regulatory Commission (ERC) said Thursday that it has so far issued refund orders worth P20 billion from January 2020 to September 2021.
“Upon evaluation and verification of the reportorial requirements submitted, the Commission approved and directed the concerned Distribution Utilities (DUs) to refund a total amount of P20,145,890,691.21 to their respective customers,” said ERC Chairperson and CEO Agnes VST Devanadera.
The total refund represents the amount of discount granted to customers, the Market Transaction Fee refund and over recoveries in the pass-through and distribution charge. The big chunk of the amount represents the DUs’ over collection in their pass-through and distribution charges.
For 2020, DUs’ customers in Luzon were granted rate reductions in their power bills ranging from P0.0025 to 0.9118/kilowatt hour (kWh); P 0.0028 to 1.3182/kWh in Visayas; and P 0.0151 to 0.9118/kWh in Mindanao.
For this year, the rate reduction for Luzon customers is anywhere from P0.0014 to 1.5064/kWh; P0.0088 to 0.5719/kWh for Visayas; and P0.0070 to 0.4348/kWh for Mindanao.
For Manila Electric Co. and Cagayan Electric Power and Light Co., the refund rates are P0.1528/kWh and P0.0268/kWh, respectively, which represents overrecoveries in the distribution charges. For the Market Transaction Fee, the rate reduction is around P0.0029/kWh to P0.0039/kWh.
The ERC said it has put in place a systematic confirmation process of pass-through charges to ensure appropriate recovery of the various pass-through charges “in an efficient manner.” Also, these periodic adjustments are implemented properly in accordance with the approved automatic cost adjustment mechanisms.
Under the Implementing Rules and Regulations of Republic Act 9136 or the Electric Power Industry Reform Act, the ERC is authorized to require report or documents from the electric power industry participants. In line with the said mandate, the ERC adopted the Uniform Reportorial Requirement since 2010 which served as the monthly reportorial submission of the DUs.
The said submission is being reviewed by the ERC to determine any over or under collections incurred by DUs by confirming the rates charged to their respective customers. Any over or under collections incurred by the DUs are either being refunded or collected upon the ERC’s approval.
“The P20-billion refund that the Commission approved is aimed to provide some rate relief, especially to those electricity consumers that were economically disadvantaged due to the limited operation or closure of some businesses.
As the Covid-19 continues to persist, we urge the DUs to exercise empathy by allowing a more flexible form of payment of their customers’ electricity bill, such as through staggered payment without penalties or interests. The ERC is finding ways to reduce the charges being billed by the DUs to their customers, such as the temporary suspension of some charges like the Bill Deposit Adjustment, Universal Charge and FIT-Allowance, when appropriate, to alleviate the poverty caused by this pandemic,” said Devanadera.
