The Energy Regulatory Commission (ERC) has ordered the partial lifting of the suspension on settlement amounts in the Wholesale Electricity Spot Market’s Reserve Market to allow power generators recover partly the costs for trading transactions in the March billing.
Under ERC’s Case 2023-002 RC, power generators can recover an initial P1.7 billion or 30 percent of the total P5.7 billion.
The regulatory body said the amount is subject to adjustments pending the submission of the list of non-compliant generators by the National Grid Corporation of the Philippines which is an intervenor in the case.
ERC said the partial lifting of the suspension is also meant to ensure continuous operations of power generators providing reserves in the system following the suspension order issued last March 25.
The decision is expected to cause an upward effect to transmission charges which may push overall power rates up.
Last April, Manila Electric Co.’s power rates went down by P0.9879 per kilowatt hour (kWh) equivalent to a reduction of around P198 in the total bill of residential customers consuming 200 kWh monthly mainly due to the suspension of payment collection from the reserve market.
“The ERC always needs to strike a balance in performing its mandate to ensure the reliability and security of the power system through the continuous operations of the generators and protecting the consuming public,” the regulatory body said in a statement.
In a separate statement, ERC chair Monalisa Dimalanta said the commission is targeting to complete the evaluation within the month when the suspension will be fully lifted.
