BY ERWIN ‘AMBO’ DELILAN
KUDOS to the Energy Regulatory Commission (ERC)! I’m glad to note that it now has sensitive ears to hear people’s whining.
Quick to say, ERC’s “earless” no more. As proof, it responded to consumers’ clamors accordingly.
I am referring to the ERC’s twin orders released just last week:
* Directing the Philippine Electricity Market Corporation (PEMC) to park congestion charges and other fees triggered by an outage at a high-voltage submarine cable connecting Cebu and Negros
* Directing all Distribution Utilities (DUs) in the country to refund more than P20-B on over collection on their passed-through and generation charges from January 2020 to September 2021.
Both, sans further ado, constituted to a magnanimous victory on the part of the power consumers all over the country.
ERC’s first directive made Negros and Panay consumer heave a sigh of relief. Congestion charges, especially line rentals, significantly caused the spiraling of electricity rates of DUs in Negros and Panay from June to August this year. Hence, consumers got irked. They ranted and cursed the “hapless” DUs.
WESM (Wholesale Electricity Spot Market) was said to be “culprit” behind these congestion charges that rendered Negros’ and Panay’s DUs “hostage”.
PEMC is the governing agency over WESM. Thus, ERC’s first mandate was coursed through the PEMC to order WESM to immediately stop collecting congestion charges from Negros and Panay DUs.
What happened to the high-voltage submarine cable of the Sy-led National Grid Corporation of the Philippines (NGCP) in Barangay Jagna, Amlan, Negros Oriental on June 15, 2021 was considered a “fortuitous” event. It’s the DPWH (Department of Public and Highways) that damaged the said cable. Hence, in layman’s interpretation, it’s inappropriate to let the consumers burden the consequences of that mishap.
DPWH, till now, remains “naïve” on the issue. It’s seems to be “earless” to the “cursing” of the public. It didn’t issue even a single press statement as to its take on the incident.
But sensitive to the clamors of their constituents, some local chief executives in Iloilo and Bacolod made certain moves aimed at rescuing the “traumatic” power consumers. They penned letters and board resolutions to ERC chairwoman Agnes Devanadera. They asked her to look at the situation, and do the necessary step(s) to avert a continuous spike of power rates in Negros and Panay. And, the “pressure” bore a “sweetest” fruit.
OVER COLLECTION
As to ERC’s second order, it dwells on the P20,145,890,629.21 – an amount (also) to be refunded by all DUs to their respective consumers as soon as possible (ASAP).
Explains the ERC, this more than P20-B amount constituted DUs’ over collection on their pass-through and distribution charges from January 2020 to September 2021.
ERC, in a statement, stresses that this order aims to put in place a systematic confirmation process to ensure recovery of the various pass-through charges in an efficient manner.
“These periodic adjustments are implemented properly in accordance with the approved automatic cost adjustment mechanism.”
It seems that ERC now is gradually erasing the tag attached to its name as one of the “irrelevant” government agencies under the Duterte administration.
Under the Implementing Rules and Regulations (IRR) of Republic Act 9136 or the Electric Power Industry Reform Act (EPIRA), ERC is (really) authorized to require report(s) from electric power industry participants.
Moreover, it has to know all the dealings within the power industry to ensure the welfare and protection of consumers.
Now, therefore, ERC’s two newest orders – regarded as pro-consumers – made every one beams amidst the difficulties due to the coronavirus disease of 2019 (COVID-19) pandemic. Both were considered “pogi points” for ERC.
REFUNDS
Now, the questions are:
* How will DUs in Negros and Panay refund the June, July and August congestion charges to their respective consumers?
* How will DUs all over the country refund this over collection on their pass-through and generation charges from January 2020 to September 2021?
Per information, discussion(s) are still going on.
Negros and Panay DUs, on the other hand, are now waiting for the adjusted WESM bill(s) from Independent Electricity Market Operator of the Philippines (IEMOP).
IEMOP is the one making the WESM billings.
They are also waiting for the final computation of the ERC as to the over collection of pass-through and generation charges from January 2020 to September 2021. Most probably, a source says, the adjusted WESM billings will come out on October 15, 2021. Same with the mandated refund on over collection as well.
And when that time comes, Negros’ and Panay’s DUs will automatically make adjustment(s) to their respective billing(s) to forcibly prompt the mandated refunds to the consumers, most likely, via offsetting. Hence, power consumers both in Negros and Panay can expect a “great” reduction in their October billings and beyond.
ONENESS
Well, the timely move of the local officials in Iloilo and Bacolod, including DUs’ executives, to pen letters and resolutions to Devanadera, asking her to intercede on the power rates brouhaha was substantial proof that, indeed, political pressure matters.
Likewise the “sensitivity” of the local politicos to the clamors of their respective constituents is also a clear manifestation that they’re still of service and within reach amidst turmoil.
It’s just a matter of knowing the issue, deciphering such, and taking relevant move(s) to immediately address any uproar. My salutation, therefore, to the following:
* Iloilo’s Gov. Arthur Defensor Jr.
* Iloilo City’s Lone District Rep. Jamjam Baronda
* Iloilo City’s Mayor Jerry Treñas
* Bacolod City’s Mayor Bing Leonardia
* Bacolod City’s Vice Mayor El Cid Familiaran
* Bacolod City’s Councilor Jun Gamboa
* Power Watch Negros’ Wennie Sancho
* MORE Power’s President Roel Castro and Karen Joy Elequin
* Central Negros Electric Cooperative’s (Ceneco) President Jojit Yap
* Negros Occidental Electric Cooperative’s (Noceco) President Jopet Milan
Their sincerest concern to the mess coupled with great deeds showed there’s really greatness in oneness./PN
