ERC gets RCOA-related complaints

BY LENIE LECTURA – OCTOBER 13, 2022
from Business Mirror

The Energy Regulatory Commission (ERC) said on Wednesday it is seeing a rising number of complaints filed by contestable customers against their power suppliers.

Contestable customers are large end-users that are able to purchase power directly from Retail Electricity Suppliers (RES) under the retail competition and open access program (RCOA) under Republic Act 9136 or the Electric Power Industry Reform Act.

The agency received 16 complaints from contestable customers, with a total demand of 123.69 megawatts (MW). The complaints range from improper implementation to unilateral termination by suppliers of the Retail Supply Contracts (RSC). The issue raised covers the imposition of Fuel Cost Recovery Adjustment (FCRA) in what customers claim to be fixed-price contracts.

The ERC said nine of these large or contestable customers belong to major manufacturing industries that are vital to the economy.

“While the letters on file cover 16 complaints with the ERC, it appears that many more contestable customers are affected, thus, this 126MW is just a fraction of the capacity affected.  We are taking this seriously especially since these contestable customers belong to industries which are critical to our economic recovery,” ERC Chairperson Monalisa Dimalanta said.

The ERC has also referred the matter to the Department of Energy (DOE) and the Department of Trade and Industry (DTI) for coordination on steps to safeguard the interests of those affected contestable customers.

It also called on the Retail Electricity Suppliers Association (RESA) to advise its members to exercise restraint in enforcing notices of disconnection while the parties are undergoing negotiation and/or dispute resolution processes.

“The ERC encourages the parties to amicably settle their disputes based on the Complaints Handling Procedures and Dispute Resolutions of the RES, as well as the Dispute Resolution or Arbitration clause incorporated in their respective RSCs.

We are certain that the parties are aware of ERC’s authority over cases where RSC provisions are disputed, pursuant to its original and exclusive jurisdiction over all cases involving disputes among participants in the energy sector and this includes contractual interpretations,” added Dimalanta.