ERC extends leniency for power distributors

By Alena Mae S. Flores – July 20, 2023, 6:15 pm
from manilastandard.net

The Energy Regulatory Commission issued a resolution granting leniency to distribution utilities that failed to meet the deadline for renewing their certificate of authority to operate and maintain a meter shop.

The move will help shield consumers from pass-on costs from electric cooperatives.

“The leniency program takes off from the PSA (power supply agreement) Caravan we conducted last year, where several DUs, electric cooperatives mostly, expressed difficulties in meeting the renewal timelines given the challenges faced during the lockdowns,” ERC chairperson and chief executive Monalisa Dimalanta said.

“With this leniency program, the ERC aims to promote compliance by the affected DUs so they can be current in their permits without facing the financial penalty which, in the case of electric cooperatives, may end up being shouldered by their member-consumers,” Dimalanta said.

The ERC issued Resolution No. 07, Series of 2023, on May 22, 2023, where DUs that have not yet renewed their permits are required to complete their applications for the renewal on or before Sept. 30, 2023 to avail of the Leniency Program and avoid financial penalties for the late renewal.

The ERC said an updated CA ensures that the DUs’ metering facilities are accurate in measuring the power consumption of customers and meet the regulatory standards.

It said DUs that continue to operate their meter shops without a valid CA do not have any authority to collect the metering charge from consumers until they are able to renew their CA.