ERC says 48 power distributors applying for rate adjustments

By Ashley Erika O. Jose – June 20, 2023 | 8:43 pm
from Business World

THE Energy Regulatory Commission (ERC) is currently evaluating applications from 48 distribution utilities (DUs) for automatic cost adjustments and true-up mechanisms for the 2020-2022 period. 

ERC Chairperson and Chief Executive Officer Monalisa C. Dimalanta said that the Commission is still evaluating whether more documents will be required from DUs.

“The applications will be evaluated by the ERC to validate the recovery of pass-through costs implemented by the DUs and confirm the true-up of other pass-through charges, if any,” the ERC said.

According to an advisory dated May 10, the ERC required all DUs in Luzon to file their over-under recoveries with the deadline set on May 30. 

“Failure of Luzon PDUs (private distribution utilities) and EC (electric cooperatives) to file their complete Over and/or Under Recoveries Applications, with the required supporting documents, within the said non-extendable period, shall be a ground for the imposition of administrative sanctions and penalties pursuant to pertinent ERC rules and regulations,” it said.

The ERC also noted that all PDUs and ECs which fail to submit required reports and supporting documents will not be allowed to impose any pass-through charges on consumers. 

The ERC said that about 20 Luzon DUs have not submitted any applications to date.

These are: Abra Electric Cooperative, Inc.; Albay Electric Cooperative, Inc.; First Bay Power Corp.; First Laguna Electric Cooperative, Inc.;  Ibaan Electric Corp.; Ilocos Norte Electric Cooperative, Inc.; Isabela I Electric Cooperative, Inc.; Isabela II Electric Cooperative; Kalinga-Apayao Electric Cooperative, Inc.; and Masbate Electric Cooperative, Inc.;

Nueva Ecija I Electric Cooperative, Inc.; Nueva Vizcaya Electric Cooperative, Inc.; Oriental Mindoro Electric Cooperative, Inc.; Pangasinan I Electric Cooperative, Inc.; Pampanga II Electric Cooperative, Inc.; Quirino Electric Cooperative, Inc.; San Fernando Electric Light & Power Co. Inc.; Ticao Island Electric Cooperative, Inc.; Zambales I Electric Cooperative, Inc.; and Zambales II Electric Cooperative, Inc.

Separately, the ERC said that it has started processing for approval the majority of 36 ancillary services procurement agreements (ASPAs) entered into by the National Grid Corp. of the Philippines (NGCP). 

It said that the grid operator issued notices of award for 36 ASPAs on April 18, of which 14 applications have been filed with the ERC and are awaiting hearing. Others have not yet paid filing fees, which are needed for the application to be deemed filed, and must still undergo pre-filing review, the ERC said. 

In separate filings posted on ERC website, the NGCP is seeking the approval of ERC for the ASPA with Giga Ace 4, Inc.; MORE Power Barge, Inc.; Bac-man Geothermal, Inc.; and First Gen Hydro Power Corp.

According to Republic Act No. 9136 or the Electric Power Industry Reform Act of 2001, Ancillary Services are “services that are necessary to support the transmission of capacity and energy from resources to loads while maintaining reliable operation of the transmission system in accordance with good utility practice and the Grid Code.”