SEN. Sherwin Gatchalian has filed a resolution that aims to determine the short, medium and long-term effects on the power sector and consumers of the enhanced community quarantine (ECQ) brought about by the coronavirus pandemic.
Gatchalian, the Senate committee on energy chairman, is also calling for an inquiry if it’s necessary for Congress to craft a financial stimulus package for the power sector to ensure continuous and reliable supply of energy while protecting electricity consumers.
He said the filing of Senate Resolution No. 361 will look into how consumers can cope with payments of all electricity bill obligations at the end of the ECQ as well as the consequences on the generation charge being paid by consumers if distribution utilities (DUs) are not able to meet the required minimum energy offtake.
He added that such resolution is important as the Department of Energy has observed around 30 percent reduction in electricity demand from March to April due to delays in ongoing construction of power plants and transmission projects.
Likewise, the Energy Regulatory Commission has directed all DUs and retail electricity suppliers to provide a grace period in electricity bills payment due within the ECQ period, from March 16 to April 30, without interest, penalties, fees and other charge.
The regulatory body has also agreed on staggering piled up payments for four months, apart from suspending the payment of all fees of DUs to power generation companies due within the quarantine period.
After the suspension of electricity bill and DU payments, Gatchalian wants to know if generation companies can still carry on with their operations and avert possible worst-case scenario of shutting down that could trigger power interruptions.
“We saw in our implementation of an ECQ a decrease in transport, industrial and commercial activities in the country which also resulted in lower electricity demand. The continuing low demand may affect the energy security of the country… In preparing for these possible effects, it is necessary for Congress to determine the necessity of a financial stimulus package for the power sector with the end goal of ensuring a continuous and reliable supply of energy while protecting the consumers,” Gatchalian said.
