Philreca Supports ERC Investigation on Overpriced Generation Rates

The Association of Electric Cooperatives (ECs) supports the Energy Regulatory Commission (ERC)’s initiative to probe an investigation of all ECs, private utilities, and their respective power suppliers on overpriced generation rates.

The Philippine Rural Electric Cooperatives Association Inc. (Philreca) has mentioned that this has been long pushed by members of the ECs.

Philreca stated that various ECs have spoken to generation companies and lobbied for renegotiation of rates amid the increases in power.

“Despite being collectors or collecting agents only of the payments due to generation companies, the transmission system operator, and even the taxes due to the government, many consumers and stakeholders would think that the ECs are the ones who benefit (or worse, the culprit) whenever there are increases in electricity rates,” mentioned Philreca.

Philreca likewise says that the increases are due to rises in charges in other parts of the electricity bills, specifically the generation charge and the government taxes.

These charges are passed through using the fuel cost adjustment mechanism that is included in the power supply agreement of the DU and the generation company.

Philreca has said that “The organization is not trying to blame anyone or any sector on what is happening. We want to be clear that we are making these clarifications so that we would know how to address the problem. Likewise, we just want to avoid barking up the wrong tree,”

“Furthermore, we would like to reiterate that electric cooperatives, being collectors of other charges had no control on the imposition of other fees. The only fees that the ECs have control of — the distribution, supply, and metering or DSM charges – remained unchanged, did not change since the last 10 years – it did not change and we never intended for it to increase,”

Source: Philstar