THE Energy Regulatory Commission (ERC) said it allowed the collection of the remaining P3.05 billion owed by consumers to power generators that supplied the power reserve market in February and March.
In a statement, the ERC said that it approved the recovery of the 70% recalculated reserve trading amounts which will be collected starting with the January billing period.
Trading participants in the Luzon and Mindanao Wholesale Electricity Spot Market (WESM) stand to recover P0.124 per kilowatt-hour (kWh) over a three-month period.
WESM trading participants in Mindanao will collect P0.033 per kWh over six months.
The reserve market allows the system operator to procure power reserves from the WESM to meet the reserve requirements of the energy system.
In March, the ERC suspended billing and settlement at the reserve market after significant price increases in reserve power for the month, compared to February.
The regulator ordered the settlement of 30% of the amounts in May to allow power generators to partially recover their costs.
The ERC then lifted the suspension in July and allowed the resumption of full operations of trading of reserves in the WESM for contracted and merchant plants.
It, however, ordered the Independent Electricity Market Operator of the Philippines (IEMOP), which operates the WESM, to recalculate the resulting reserve trading amounts for the billing periods of February and March.
The IEMOP was also told to adjust the value for the remaining 70% for the March billing period. The ERC then reviewed the recalculation submitted by the operator.
“As a result, the reserve trading amounts were further recalculated and, after deducting for non-compliance, was reduced by P725 million,” the ERC said.
Lawrence S. Fernandez, vice-president and head of utility economics of Manila Electric Co., said that the power distributor is estimating an increase of around P0.40 per kWh in the transmission charge.
“Considering that total transmission charge right now is around P0.90 per kWh, (the increase) is almost half. Impact is mitigated by spreading recovery over three months,” he said via Viber. — Sheldeen Joy Talavera
