The Energy Regulatory Commission (ERC) issued show cause orders to 37 power generation companies (gencos) for failure to submit complete fuel purchase documents necessary in validating the reasonableness of generation charges being passed on to consumers.
The ERC said the documents are necessary in validating the reasonableness of generation charges being passed on to consumers in the exercise of its regulatory mandate.
“The ERC continues to conduct rigorous fuel audits to make sure that only fair and reasonable costs are being charged by our regulated entities. We owe it to the Filipino consumers to protect them from unnecessary charges and ensure that they’re not paying more than they should for electricity,” ERC chairperson and chief executive Monalisa Dimalanta said.
“We likewise remind gencos and distribution utilities (DUs) to fully cooperate and comply with these requirements, so we can uphold transparency and deliver power at the least cost possible,” Dimalanta said.
The commission, in several orders, sought the explanation of the gencos for failing to act on ERC’s letter-orders issued between December 2022 and March 2024 requiring the submission of complete sets of fuel cost data and documents covering the period from January to October 2022.
The gencos served with SCOs include Anda Power Corp. , Angeles Power Inc., Bukidnon Power Corp. (BPC), Calamian Islands Power, Corp., Delta Power, Inc., DMCI Power Corp., DMCI Masbate Power Corp., KEPCO SPC Power Corp., King Energy Generation, Inc., Masinloc Power Partners Co. Ltd., Minergy Power Corp., Nickel Asia Corp., North Bukidnon Power Corporation (NBPC) and OrMin Power, Inc.
The other gencos are Palawan Power Generation, Inc. , Panay Energy Development Corp., Peakpower Soccsargen, Inc., Peakpower Bukidnon Inc. , Peakpower San Francisco, Inc., Power One Corp., Powersource Philippines Energy, Inc., San Miguel Energy Corp., SMC Consolidated Power Corp. and Siquijor Island Power Corp.
Also issued SCOs are San Miguel Consolidated Power Corp., SPC Island Power Corp., Strategic Energy Development Inc., Therma Luzon, Inc., Toledo Power Corp., Western Mindanao Power Corp., FDC Misamis Power Corp., GNPower Dinginin, Ltd. Co., GNPower Mariveles Energy Center, Ltd. Co., Mapalad Energy Generating Corp., Sarangani Energy Corp., Palm Concepcion Power Corpo., and Supreme Power Corp.
The commission directed the gencos to submit the required documents and a Verified Explanation within 15 days from receipt of the decision.
The power facilities must justify why no administrative penalty should be imposed for their failure to comply with ERC’s directives, in accordance with Sections 43(o) and 43(r) of Republic Act No. 9136, or the Electric Power Industry Reform Act (EPIRA), and with the terms of their ERC-approved power supply agreements (PSAs) with various DUs.
Fuel invoices must be submitted on a monthly basis to support pass-through fuel costs reflected in the billings of gencos.
These invoices are necessary for DUs to verify whether the volume, price, and efficiency rates of pass-through costs fall within the formula and cap prescribed by the commission in the order or decision approving the implementation of their PSAs.
The ERC said if no sufficient basis is found for the recovery of the costs, they cannot be charged to consumers, or must be refunded if already billed.
Failure by either DUs or gencos to submit the required documents and to validate the pass-on charges may result in administrative liability and the imposition of fines.