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50 power distributors seen non-compliant with order to itemize generation charge

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THE Energy Regulatory Commission (ERC) said on Thursday that 50 distribution utilities (DUs) are now under evaluation for alleged non-compliance with an order to provide their clients a breakdown of their generation charge.

In a statement, the ERC said that only 65% or 91 out of the total 141 DUs itemized their generation charges.

ERC Resolution No. 05 series of 2007 directed DUs to list the components of their generation charges.

The ERC said that this resolution requires “all DUs to post on their respective websites the breakdown of their generation charges, including, but not limited to, their sources.”

The ERC did not identify the DUs nor discuss possible penalties.

The ERC said section 25 of the Electric Power Industry Reform Act of 2001 (EPIRA) obliges DUs to supply electricity on a least-cost basis.

The generation charge is the direct cost of obtaining energy from power generators. It accounts for over half of a typical consumer’s power bill.

“By posting the detailed breakdown of the generation cost, the consumers are well informed of the different sources of power that the DU had contracted including the cost per supply source,” the ERC said.

The ERC noted that the order compels DUs to be transparent and accountable in procuring their power supply. — Ashley Erika O. Jose

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  • Published: 2 months ago on October 6, 2022
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  • Last Modified: October 6, 2022 @ 12:04 pm
  • Filed Under: Economy, Editor's Pick

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