THE Energy Regulatory Commission (ERC) said it will order private distribution utilities (PDUs) to refund unspent fees collected during the regulatory rate reset process totaling P1.18 billion.
In a statement on Wednesday, the ERC said it found that regulatory reset fees continued to be included in the rates collected by PDUs.
As such, the regulator directed 17 PDUs to refund the amounts collected from consumers, ranging from P0.0476 per kilowatt-hour (kWh) to P0.3190 per kWh.
The ERC said that the amounts were initially approved to engage technical experts for the periodical regulatory rate reset conducted by the ERC.
“However, no actual payments were made as the PDUs did not engage said technical experts and amounts were provided to the ERC under the annual government budget for these purposes,” the regulator said.
The ERC also resolved to order PDUs to cease from collecting regulatory reset fees from consumers.
“We are targeting the release of the resolution within the month so it can be implemented early 2025,” ERC Chairperson and Chief Executive Officer Monalisa C. Dimalanta said.
Distribution utilities such as Manila Electric Co. (Meralco) are subject to a performance-based regulation, under which they are required to undergo a rate reset process prior to the start of the next regulatory year.
The rate reset process is usually a forward-looking exercise that requires the regulated entity to submit forecasted expenditures and proposed projects for the ERC to review and adjust rates.
Meralco, the largest distribution utility in the country, was ordered to refund P987.16 million, equivalent to P0.2264 per kWh.
Asked to comment, the power distributor said it will wait for the resolution and will be ready to comply. — Sheldeen Joy Talavera
