Metro Manila (CNN Philippines, December 7) — The Energy Regulatory Commission (ERC) has launched a probe into the “accuracy and reasonableness” of generation rates being passed on by distribution utilities (DUs) to their consumers amid recent hikes in electricity rates.
The ERC said it will investigate private utilities (PUs) and electric cooperatives (ECs) in the country and their respective power suppliers under their Power Supply Agreements (PSAs) after receiving numerous complaints from consumers.
“In the course of ERC’s monitoring of monthly submissions from PUs/ECs of their generation charges, we have identified the need to conduct a more thorough validation of the passed-on or pass-through charges under certain PSAs,” said ERC Chairperson and CEO Monalisa Dimalanta on Wednesday.
“The ERC’s investigation aims to confirm whether the charges passed on to consumers are only eligible costs and there are no hidden and extraordinary charges,” the commission said.
The ERC has released 63 letters on Wednesday to PUs, ECs, and respective PSA counter-parties, seeking the substantiation of generation charges.
The validation requires submission of documents to support the detailed calculation of fuel charges that account for a significant portion of the increases in electricity rates since January 2022, the commission said.
It added the first batch of directives was based on complaints filed in the ERC or received through the Department of Energy and the Office of the President.
“Based on the findings, the DUs will not only be required to refund the excess amounts collected but may also be imposed appropriate penalties when warranted,” the ERC said.
The ERC has the power to investigate or act against any player in the energy sector for violations under the Electric Power Industry Reform Act of 2001 (EPIRA). It is also mandated to ensure transparency and reasonable electricity prices.
The commission has already suspended the collection of the Feed-in Tariff Allowance for three months to help Filipino households amid rising inflation, covering December 2022 to February 2023 billings.
Meanwhile, the country’s largest power distributor, the Manila Electric Co., said it was unsure if there will be an increase in power rates next month following San Miguel Corporation’s termination of their Ilijan power supply deal.
