Power distributors required to detail pass-through charges

DISTRIBUTION utilities (DUs) are now required to submit a detailed breakdown of the components of their power bills following the revision of the rules on collecting pass-through charges, the Energy Regulatory Commission (ERC) said.

“We are looking forward to 2023 as the beginning of an era of greater transparency in electricity pricing. The new uniform reportorial requirement (URR) form will allow more information to be available and accessible,” ERC Chairperson and Chief Executive Officer Monalisa C. Dimalanta said in a statement.

The energy regulator’s Resolution No. 14 Series of 2022 calls for more transparent collection of pass-through charges by DUs. Pass-through charges are fees other than the distribution charge and the payment for the use of DUs’ facilities.

Pass-through charges are collected through the generation charge, which accounts for 60% of the consumer power bill. Other bill components are the transmission charge, or the fee for the use of transmission grid; other subsidies, and mandatory payments like the system loss charge and other charges as approved by the ERC.

Other pass-through charges include taxes, the feed-in tariff allowance (FIT-All), and the universal charge (UC).