The Energy Regulatory Commission (ERC) said it has been receiving complaints from contestable customers on the alleged improper implementation as well as termination by suppliers of retail supply contracts (RSCs).
Contestable customers are large endusers, mostly from key industries, that are able to purchase power directly from suppliers at more competitive prices because of the retail competition and open access program.
ERC said in a statement Tuesday night that the most critical issue raised by contestable customers is the imposition of fuel cost recovery adjustments despite having fixed price provisions in their RSCs.
At present, ERC said, it received16 complaints from nine contestable customers belonging to major manufacturing industries that is equivalent to a total demand of 123.69 megawatts (MW).
“While the letters on file cover 16 complaints with the ERC, it appears that many more contestable customers are affected, thus, this 126MW is just a fraction of the capacity affected. We are taking this seriously especially since these contestable customers belong to industries which are critical to our economic recovery,” ERC Chair Monalisa Dimalanta said in the statement.
Dimalanta said the issue has been also referred to the departments of Energy and of Trade and Industry for coordination on steps to safeguard the interest of affected contestable customers.
ERC alsoasked the Retail Electricity Suppliers Association to advise its members to exercise restraint in enforcing notices of disconnection while the parties undergo negotiation or dispute resolution processes.
“We are certain that the parties are aware of ERC’s authority over cases where RSC provisions are disputed, pursuant to its original and exclusive jurisdiction over all cases involving disputes among participants in the energy sector and this includes contractual interpretations,” Dimalanta added.
