ERC flags 50 DUs for non-compliance to ‘itemized’ generation charges
By Myrna M. Velasco – October 6, 2022, 9:27 AM
from Manila Bulletin
The Energy Regulatory Commission (ERC) has flagged at least 50 distribution utilities (DUs) for non-compliance to the regulatory mandate of itemizing the generation charges from their respective power suppliers.
In a statement to the media, the regulatory body indicated that of the 141 DUs operating all over the country, only 91 or 65 percent have been assessed to have strictly heeded the ERC edict.
“The remaining 50 DUs who have not submitted compliance are now under evaluation by the ERC for determination of possible violation of ERC order,” the industry regulator stressed.
The ERC qualified that the requirement to itemize the generation charges had been anchored on ERC Resolution No. 05, Series of 2007, which mandates “all DUs to post in their respective websites the breakdown of their generation charges, including, but not limited to, their sources.”
The ERC has not given details yet on the scale of penalties to be imposed against the DUs if it will eventually be established that they have violated regulatory rules.
The industry regulator explained that under Section 25 of Republic Act No. 9136 or Electric Power Industry Reform Act (EPIRA), it was clearly prescribed that “a distribution utility shall have the obligation to supply electricity in the least cost manner to its captive market, subject to the collection of retail rate duly approved by the ERC”.
The generation charge accounts for the largest fraction of the cost components being passed on in the monthly electric bills of ratepayers – essentially having 50-percent to 60-percent share in the overall monthly rate of the power utilities.
“By posting the detailed breakdown of the generation cost, the consumers are well informed of the different sources of power that the DU had contracted including the cost per supply source,” the ERC stated.
It further emphasized that this regulatory tool “fosters transparency and full accountability on the part of the DU in its procurement of power supply, the cost of which is eventually passed on to the consumers.”
The regulatory body similarly announced that on its keen resolve to promote transparency, the ERC will already be providing links in its website on the monthly generation charges of the distribution utilities.
