The Energy Regulatory Commission on Thursday ordered distribution utilities, both privately-owned and electric cooperatives, to return some P20 billion in overcharges to their respective customers in the past two years.
“Upon evaluation and verification of the reportorial requirements submitted, the commission approved and directed the concerned distribution utilities to refund a total amount of P20,145,890,691.21 to their respective customers. The big chunk of the amount represents the DUs’ over-collection in their pass-through and distribution charges,” ERC chairperson Agnes Devanadera said in a statement.
Customers of distribution utilities experienced the following rate reductions last year: Luzon at P0.0025 to P0.9118 per kilowatt-hour; Visayas from P0.0028 to P1.3182 per kWh; and Mindanao from P0.0151 to P0.9118 per kWh.
ERC said the rate reduction this year is about P0.0014 to P1.5064 per kWh in Luzon ; P0.0088 to P0.5719 per kWh for Visayas; and P0.0070 to P0.4348 per kWh for Mindanao.
It said that for the franchise area of Manila Electric Co. and Cagayan Electric Power and Light Co., the refund rates are P0.1528 per kWh and P0.0268 percent kWh, respectively which represents over-recoveries in the distribution charges.
Meralco said that for the market transaction fee, the rate reduction is around P0.0029 per kWh to P0.0039 per kWh.
“The P20 billion refund that the commission approved is aimed to provide some rate relief, especially to those electricity consumers that were economically disadvantaged due to the limited operation or closure of some businesses. As the COVID-19 continues to persist, we urge the DUs to exercise empathy by allowing a more flexible form of payment of their customers’ electricity bill, such as through staggered payment without penalties or interests.” Devanadera said.
“The ERC is finding ways to reduce the charges being billed by the DUs to their customers, such as the temporary suspension of some charges like the bill deposit adjustment, universal charge and FIT-Allowance, when appropriate, to alleviate the poverty caused by this pandemic,” she said.
ERC established a systematic confirmation process of pass-through charges to ensure appropriate recovery of the various pass-through charges in an efficient manner, and that these periodic adjustments are implemented properly in accordance with the approved automatic cost adjustment mechanisms.
Under the implementing rules and regulations of Republic Act No. 9136 or the Electric Power Industry Reform Act, the ERC is authorized to require report or documents from the electric power industry participants.
The ERC adopted the uniform reportorial requirement in 2010 which served as the monthly reportorial submission of the DUs. ERC reviews the said submission to determine any over or under collection incurred by DUs by confirming the rates charged to their respective customers.
