‘Distribution wheeling rates up for review’
BY LENIE LECTURA – OCTOBER 4, 2022
from Business Mirror
Following the release of the revised Rules for the Setting Transmission Wheeling Rates (RTWR), the Energy Regulatory Commission (ERC) said Monday it would also review the distribution wheeling rates.
“There is also a reset process with the DUs [distribution utilities]. There will be adjustments, but I don’t know what to pre-empt the review process. Definitely, the next review is with the distribution,” said ERC Chairperson Monalisa Dimalanta.
The ERC has amended the RTWR. This move triggers the rate reset process of the transmission system concessionaire, the National Grid Corporation of the Philippines (NGCP). The last transmission reset completed by the ERC was for the five-year Regulatory Period covering 2010-2015.
The amended RTWR sets the rules for the rate reset process for the Fifth Regulatory Period, which covers years 2023 to 2027, as well as the succeeding Regulatory Periods. More importantly, the amended RTWR prescribes the process of review for the Fourth Regulatory Period covering the years 2016 to 2022.
“We are trying very hard to complete the process within the year so that by January 2023 the rates can already be adjusted,” said Dimalanta, referring to the adjusted 4th regulatory period.
The adjustment for the transmission wheeling rates for the fifth regulatory period, meanwhile, will commence 2023 to 2027.
“Over the weekend, NGCP was provided with the resolution. It involved two parallel processes, one is the reset of the 4th regulatory period. Second is we need to conduct for 5th regulatory period.
Hopefully, these processes will be regularized rather than have a mismatch. The regulatory period must contain forecast periods. The rates for 5th RP will be issued by the third quarter of 2023. Hopefully by 2023, we will get back on track,” the ERC said.
When sought for comment, the Manila Electric Co. (Meralco) said it is authorized to continue implementing the ERC-approved interim average rate of P1.3522 per kilowatt hour (kWh) until otherwise directed.
“It’s the reduced wheeling charges that ERC directed Meralco to implement beginning August 2022, on top of the four refunds Meralco was ordered to implement,” said Meralco utilities economics head Lawrence Fernandez.
