Reserve market billing to raise 2025 power rates
By Alena Mae S. Flores – December 5, 2024, 8:50 pm
from manilastandard.net
The Energy Regulatory Commission (ERC) approved the collection of P3.05 billion from consumers to cover 70 percent of uncollected payments in the ancillary reserve market. This is expected to result in higher electricity prices.
The ERC said the National Grid Corporation of the Philippines (NGCP) will collect the amount over three months for Luzon and Mindanao consumers and six months for Visayas consumers. The rate impact will be P0.124 per kilowatt-hour (kWh) for Luzon and Visayas and P0.033 per kWh for Mindanao.
Individual distribution utilities and electric cooperatives may see higher increases, with Meralco estimating a P0.40-per-kWh hike.
The collection will start in January 2025. The decision follows the ERC’s review of the Independent Electricity Market Operator of the Philippines’ (IEMOP) recalculation of reserve trading amounts for February and March 2024.
The ERC suspended the implementation of the billing and settlement in the co-optimized energy and reserve market on March 26, 2024, due to concerns over the Price Determination Methodology. The initial amount submitted by NGCP for billing and collection was over P9.1 billion, but IEMOP recalculated the amount after the suspension.
The ERC lifted the suspension on July 26, 2024, and allowed the resumption of full operations of reserve trading. The commission directed IEMOP to recalculate the reserve trading amounts for February and March 2024 and adjust the value for the remaining 70 percent of the March billing month.
It also issued 3,959 certificates of compliance (COCs) and 334 provisional authorities to operate (PAOs) from January to November 2024, to enhance grid security and ensure affordable electricity rates. These facilities account for 24,092.79 megawatts (MW) of supply to the grid.
The ERC approved 321 COCs and 19 PAOs to generation companies, self-generating facilities, distributed energy resources, and qualified end-users in various areas in November.
ERC chairperson and chief executive Monalisa Dimalanta said the commission has been processing approvals and issuances of COCs and PAOs within 30 to 45 days, faster than the 60-day timeline under the Energy Virtual One-Stop Shop (EVOSS) Law. This paves the way for greater energy security and affordability.
The ERC issues COCs to authorize the operation of power plants and PAOs to allow generation companies to commence operations pending the issuance of their COCs.
