Iloilo City power distributor More Electric and Power Corp. reported a system loss of 6 percent in June, lower than the 6-5 percent system loss cap mandated for distribution utilities, according to the Energy Regulatory Commission.
“The June 2020 data with us shows this…Per the monthly report we have, MORE is only charging 6 percent SL,” ERC spokesperson Floresinda Digal said. Distribution utilities that comply with the mandated system loss cap do not charge the system loss they incur beyond the cap.
Digal said all declared system loss cap, especially the costs passed on to consumers, are verified by the regulator.
“That is subject to verification, including the amounts declared as pilferage recoveries,” the ERC official said. She said distribution utilities and electric cooperatives are not allowed to recover costs beyond the cap.
ERC chairman Agnes Devanadera earlier said the commission was strictly monitoring the compliance of distribution utilities with the system loss cap.
Under the ERC rules, DUs are required to submit system loss reports monthly which are used by the agency to monitor compliance.
ERC implemented a system loss cap of 6.5 percent on all DUs in 2018 with the aim of reducing the electricity costs passed on to consumers as mandated by the Electric Power Industry Reform Act and improve services of power distributors.
“The lowering of the system loss caps is a move to bring down the power rates and help electricity consumers mitigate the impact of rising costs of commodities and services. This will encourage DUs to improve their distribution system and facilities so that they adhere to the newly-prescribed system loss cap,” Devanadera said.
MORE Power earlier questioned the claim of Koalisyon Bantay Kuryente that its system loss reached 7.1 percent. It said the system loss it passed on to consumers was only 6 percent, clearly below the 6.5 percent cap.
The company committed to its 65,000 power customers that it would continue to bring down the system loss within three years through a P1.8-billion modernization program.
MORE Power spokesman Jonathan Cabrera said the company’s system’s loss to date is 6 percent, contrary to the claim of rival Panay Electric Co.
He said MORE Power’s systems loss was expected to go down to 5.5 percent by 2021 and 4.75 percent by 2022 as the company aggressively runs after illegal connections or “jumpers.”
