The Energy Regulatory Commission (ERC) has started the conduct of a caravan meant to review power supply agreements (PSAs) nationwide, to assist electric cooperatives (ECs) in exploring and formulating immediate and mid-term measures to address the high cost of electricity.
In a statement, ERC said the PSA caravan kicked off last week in Laoag, Ilocos Norte, to primarily evaluate the generation component of consumers’ electricity bills.
Generation charge constitutes almost 60 percent of the power bill and accounts for the cost of power generated and sold to distribution utilities under PSAs or through the Wholesale Electricity Spot Market which the utilities then supply to their captive customers.
In a chance meeting on Tuesday, Monalisa Dimalanta, ERC chairperson, told reporters that among the provinces where the PSA caravan will also be held are Cagayan de Oro and Iloilo.
The regulatory body noted the importance of this effort as generation charges have increased by more than 20 percent as of August, compared to 2021 generation charges, across the country.
ERC said the generation rate increase is driven mainly by non-fixed pass-through components of the rates for the cost of fuel, specifically coal, and the upward adjustment in foreign exchange rates.
The ERC said its delegation in the PSA caravan is composed of representatives from the offices of the commissioners and from the Department of Energy.
The regulatory body added the PSA caravan in Ilocosbrought out a significant number of insights and best practices that garnered productive exchange of possible solutions from participating ECs.
Among ECs that participated were Central Pangasinan Electric Cooperative, Ilocos Norte Electric Cooperative, Ilocos Sur Electric Cooperative, Pangasinan III Electric Cooperative, Abra Electric Cooperative and Mountain Province Electric Cooperative.
