VARIOUS stakeholders of the power industry including distribution utilities (DUs), generation companies (gencos) and the regulatory have assured of uninterrupted power supply but noted that some changes must be implemented in order to cope with the new coronavirus disease 2019 pandemic.
Grace period
In an advisory published by the Energy Regulatory Commission (ERC) on Wednesday night, all DUs and retail electricity suppliers (RES) were directed to provide a grace period to all customers through the deferment of their electricity bill falling due within the period of the enhanced community quarantine (ECQ), without interest, penalties, fees and other charges.
The regulatory body said the cumulative amount of electricity bill that was supposed to have fallen due within the ECQ shall be amortized in four equal monthly installments, payable in the four succeeding billing months following the end of the ECQ that must be reflected as a separate item in the electricity bill.
However, the ERC said customers who have the ability to pay are still encouraged to settle their bills within the original due date to help manage the cash flow in the energy supply chain and ensure the continuous supply of electricity.
Despite the situation, the commission reminded DUs they are still obliged to procure their power requirements in the least cost manner, taking into consideration all attendant circumstances, including the approved contract’s minimum contracted capacity and fixed costs.
The ERC also called on gencos, the Power Sector Assets and Liabilities Management Corp. (PSALM), National Power Corp. (NPC), National Transmission Corp., National Grid Corporation of the Philippines, independent power producers, independent power producer administrators and the spot market operator to extend the same payment scheme to DUs and RES that will still be in accordance with the parties’ approved supply contract.
The regulatory body also mentioned that it will continue to implement a work from home policy for its employees in all its offices and that all applications, pleadings and compliances falling due on or before May 31, may be submitted sixty days from April 30.
Meralco to heed directive
The country’s biggest DU, the Manila Electric Co. (Meralco) said that it will follow the ERC’s directive on payments citing that such move will also ease and lessen the burden for customers through the current lockdown.
“For our customers who wish to settle their accounts we also have many options available, including our Meralco online service. We would like to clarify, however, that the P47 convenience fee does not go to Meralco, but is paid to our payment partners but for customers who wish to skip the convenience fee, there are many other payment options being offered at your convenience,” Jose Ronald Valles, the company’s first vice president and head of regulatory management, explained in a statement.
Gencos appeal
In the wake of calls to honor the pandemic as a force majeure claim of DUs, the Philippine Independent Power Producers Association (PIPPA) said this move will force some of its members to stop operations.
Anne Estorco Montelibano, PIPPA president and executive director, said the power supply chain should not be disturbed because like food and water, any disruption can cause scarcity.
“Mandating generation companies to force majeure claims by distribution utilities/electric cooperatives not only disrupts the power supply chain, it is also tantamount to one sector taking advantage of the other. Using consumer interest as a guise for undermining power supply contracts should not be allowed as this will affect the ability of generating companies to pay for fuel, operating costs, and even loans, which will render it unable to continue operating its power plants. This can happen quickly, in some cases, within one unpaid billing period,” Montelibano said.
She added unreliable power will have an adverse impact on the delivery of health services as well as governmental functions and may aggravate the anxiety of people who rely heavily on instant information to help them cope with the difficulties of the lockdown.
“Force majeure claims cut both ways and this will have disastrous consequences if it remains unchecked. It will be each industry player acting solely on the basis of its own commercial interests. This is what we need to emphasize, that the power industry and its regulators must not allow this. Rather, we must address these problems and all its complications as one industry where everybody shares the burden and everyone benefits from the gains,” Montelibano added.
However, PIPPA said all of its member power generators are working to ensure that the country has stable, reliable, and continuous power during the fight against COVID-19.
