MANILA, Philippines — The Energy Regulatory Commission (ERC) has directed all privately-owned distribution utilities (DUs) and electric cooperatives (ECs) to refund customers P20.15 billion in over recoveries.
ERC chairperson and CEO Agnes Devanadera said the commission approved the refund based on the evaluation and verification of the reportorial requirements submitted.
The total amount represents the amount of discount granted to customers, the market transaction fee refund and over recoveries in the pass-through and distribution charge, which cover the big chunk of the refund.
“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,” she said.
“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.
Based on the ERC order, all customers of power distributors should see a rate reduction of P0.0025 per kilowatt-hour to P0.9118 per kWh in Luzon, P0.0028 per kWh to 1.3182 per kWh in Visayas, and P0.0151 per kWh to P0.9118 per kWh in Mindanao for the remainder of the year.
For next year, customers’ electricity bills should reflect a decrease of P0.0014 per kWh to P1.5064 per kWh in Luzon, P0.0088 per kWh to P0.5719 per kWh in Visayas, and P0.0070 per kWh to P0.4348 per kWh in Mindanao.
Specifically for Manila Electric Co. (Meralco) and Cagayan Electric Power and Light Co. (Cepalco), the ERC ordered them to refund P0.1528 per kWh and P0.0268 per kWh, respectively, which represent over recoveries in the distribution charges.
For the market transaction fee, the rate reduction amounts to P0.0029 per kWh to P0.0039 per kWh.
The 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.