Republic of the Philippines

ENERGY REGULATORY COMMISSION

A world class and independent electric power industry regulator that equitably promotes and protects the interests of consumers and other stakeholders, to enable the delivery of long-term benefits that contribute to sustained economic growth and an improved quality of life.


ERC Orders Private DUs to Refund Regulatory Reset Cost


The Energy Regulatory Commission (ERC) directed all privately-owned electric distribution utilities (DUs) to refund the amount pertaining to the unutilized Regulatory Reset Cost, with corresponding interest, to their respective consumers.  The one-time refund shall be effected immediately in the July 2019 billing period.  

Under the Performance-Based Regulation (PBR) methodology, privately-owned DUs are allowed to charge Regulatory Reset Cost in their Revenue Requirement.  The Regulatory Reset Cost represents expenses incurred in engaging regulatory experts or consultants when setting and updating the DU’s electricity rates.

The Commission is of the view that the cost of regulation should be at the expense of the government and should not be a burden to the electricity consumers.  The amount collected as Regulatory Reset Cost for the 3rd Regulatory Period remained unused and inasmuch as the 17th Congress appropriated funds for purposes of regulatory reset, the Commission deems it prudent to refund the amounts collected by DUs for this purpose.  In directing the refund, private DUs’ customers will be benefitted by the said Regulatory Reset Cost refund”, ERC Chair Devanadera explained.

Based on ERC’s calculation, the Regulatory Reset Cost refund ranges from PhP0.04 to PhP0.08 per kWh.  In the case of MERALCO, customers can expect, at least, a PhP0.0731 per kWh refund in July.  Distribution utilities will be directed to submit a report on their compliance with the particular refund directive of the ERC, and the same shall be subject to the audit and review in the next regulatory reset to determine if further refunds are in order.

Electricity consumers of privately-owned distribution utilities are advised to check their electricity bills next month and find out if the Regulatory Reset Cost refund has been effected, including any relevant interest earned thereon.  The Commission shall endeavor to work with the 18th Congress to seek funding support that will allow us to exercise our mandate in ways that will ease the burden on the part of our consumers,” Chair Devanadera added.

 

Today at ERC
Wednesday, October 23, 2019

Hearing Schedules
Time:
09:00
Case No.:
2017-042 RC [EV]
Applicant:
PEMC
Venue:
ERC Hearing Room (15th floor)
Title:
In the Matter of the Application for the Approval of the Price Determination Methodology for the Wholesale Electricity Spot Market (WESM)
Time:
10:00
Case No.:
2019-056 RC [PT] [EV]
Applicant:
TRANSCO
Venue:
ERC Hearing Room (15th floor)
Title:
In the Matter of the Application for Approval of the Feed-In Tariff Allowance for Calendar Year 2020 Pursuant to the Guidelines for the Collection of the Feed - In - Tariff Allowance and Disbursement of the Feed - In - Tariff Allowance Fund, with Prayer for Provisional Authority
Time:
10:00
Case No.:
2019-061 RC [JU] [EX] [PT] [EV]
Applicant:
NGCP & SIPC
Venue:
Seda Atria, Pison Avenue, Atria Park District San Rafael, Mandurriao Iloilo City
Title:
In the Matter of the Application for Approval of the Ancillary Services Procurement Agreement Between the National Grid Corporation of the Philippines and SPC Island Power Corporation, with Prayer for the Issuance of Provisional Authority
Time:
14:00
Case No.:
2016-179 RC [PT] [EV]
Applicant:
NGCP
Venue:
ERC Hearing Room (15th floor)
Title:
In the Matter of the Application of the National Grid Corporation of the Philippines for the Approval of Force Majeure Event Regulated FM Pass Through for Typhoon Lando in Luzon and Sabotage Incidents in Mindanao, In Accordance with the Rules for Setting Transmission Wheeling Rates, with Prayer for Provisional Authority

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