The Energy Regulatory Commission said Thursday it issued separate orders to 20 Luzon-based distribution utilities to refund over collections that will eventually redound to lower rates to consumers.
ERC said the over collections involved the DUs generation rate, transmission rate, system loss rate, lifeline subsidy rate and senior citizen subsidy rate from January 2017 to December 2019.
The refund is to be implemented for 12 months effective the next billing cycle.
“Upon our initial evaluation, the commission found that the Luzon-based DUs incurred over recoveries in the various pass-through charges that they collected from their customers. These pass-through charges should be revenue-neutral on the part of the DUs, and they are not allowed to incur any additional revenue or losses therefrom,” ERC chairperson and chief executive Agnes Devanadera said in a statement.