Power distributors face ERC fines for disconnecting typhoon victims

By Alena Mae S. Flores – November 4, 2024, 8:30 pm
from manilastandard.net

The Energy Regulatory Commission (ERC) said Monday it will penalize distribution utilities that fail to comply with a directive to implement a moratorium on electricity line disconnections and staggered payment collections in areas affected by Typhoon Kristine.

ERC chairperson Monalisa Dimalanta said the biggest factor in the issue is high generation costs, and generators should also agree to a grace period. She said delayed payments could lead to increased collection costs, creating a domino effect.

The ERC ordered distribution utilities in areas under a state of calamity due to Kristine to implement a staggered payment scheme for consumers using 200 kilowatt-hours or less per month for at least six months.

The commission also directed utilities to offer flexible payment options for bills from October to December to help consumers recover from the typhoon’s impact.

The ERC’s directive aligns with President Ferdinand Marcos Jr.’s order to study a moratorium on disconnections and payments.

The ERC also ordered utilities to suspend disconnections for residential and non-residential consumers in the captive market using 200 kWh or less per month. For consumers exceeding 200 kWh, utilities may offer alternative payment terms.

It encouraged consumers to contact their respective distribution utilities to inquire about available payment options or request special terms.

The ERC also directed power generators, state-run agencies like PSALM, NPC, TransCo, the NGCP, IPPs, IPPAs and the market operator to extend the same payment scheme to affected distribution utilities.