PEMC told to defer surplus collection
By Jordeene B. Lagare – June 25, 2021
from The Manila Times
The Energy Regulatory Commission (ERC) ordered the Philippine Electricity Market Corp. (PEMC) to postpone the collection of the net settlement surplus (NSS) from distribution utilities and electric cooperatives.
In a statement, ERC Chairperson and Chief Executive Officer Agnes Devanadera said the move was intended to “prevent and shield the electricity consumers from a bill shock.”
The NSS adjustment, supposedly to be reflected in the July 2021 electric bill, would have resulted in an additional charge of about 20 centavos per kilowatt hour to Manila Electric Co.’s customers.
The ERC issued the directive upon being informed and later on confirmed by the PEMC regarding the huge discrepancy in the Wholesale Electricity Spot Market (WESM) preliminary statement vis a vis-à-vis the final statement for May 2021 supply month.
Likewise, the ERC directed the PEMC and the National Grid Corporation of the Philippines, the system operator, to explain in writing the reason for the NSS adjustment that caused the WESM bill adjustment for the previous month.
According to the regulator, the NSS adjustment is the surplus or deficit remaining after all market transactions have been accounted for.
This accounts for price differences occurring between generator and customer locations because of losses and congestion given the WESM Locational Marginal Pricing Scheme.
