The Energy Regulatory Commission (ERC) ordered retail electricity suppliers (RES) to cease and desist from issuing notices of disconnections to contestable customers.
Meanwhile, distribution utilities (DUs) as well as the Independent Electricity Market Operator of the Philippines (IEMOP) were asked to stop disconnecting the electricity supply of similar customers.
Contestable customers are large end-users, mostly from key industries that are able to purchase power directly from suppliers at more competitive prices, because of retail competition and open access program.
ERC said 13 cease and desist orders (CDO) were issued by ERC following the hearings conducted on several petitions for dispute resolution filed by contestable consumers.
The regulatory body said cases were filed by consumers due to differing interpretations by the parties on the propriety of the imposition by RES of fuel cost recovery adjustments (FCRA) or incremental fuel cost increase (IFCI).
Contestable customers argued their contracts prescribed fixed rates but the adjustments are now being claimed unilaterally by their suppliers in violation of their supply contracts.
RES respondents argued jurisdictional issues against the ERC while DUs and the IEMOP were impleaded, since the issuance of notices and the disconnections of service are performed by these parties.
ERC directed the parties to maintain status quo while motions to dismiss filed by RES are being evaluated by the commission and during this period, parties are also required to observe the terms and conditions of their supply agreements.
The ERC assured consumers of continuous electricity supply pending the final resolution.
