ERC orders power distributors: No disconnections until end-2020

The Energy Regulatory Commission (ERC) has formalized its intention to extend the no-disconnection policy until the end of the year.

The policy, however, will only benefit customers with low monthly electricity consumption.

In an advisory on Thursday, the ERC ordered power distribution utilities “not to implement any disconnection on account of non-payment of bills until December 31, 2020 for consumers with monthly consumption not higher than twice the ERC maximum lifeline consumption level.”

This means those who consume 200 kilowatt-hours (kWh) and below a month will benefit from the no-disconnection policy.

For all customers, distributors and retail electricity suppliers are directed to implement a minimum of 30-day grace period on all payments falling due within the period of enhanced community quarantine (ECQ) and modified ECQ, "without incurring interest, penalties, and other charges."

The ERC said any unpaid balance after the lapse of the 30-day grace period shall be payable in three equal monthly installments without incurring interest, penalties, and other charges.

Meanwhile, customers who have the ability to pay are encouraged to settle their bills within the original due date “to help manage the cash flow in the energy supply chain and ensure the continuous supply of electricity.”

Power distributors may offer less onerous payment terms to encourage early payment, according to the ERC.

Government offices, agencies, government owned-and-controlled corporations and other government instrumentalities are not covered by the 30-day grace period and installment payment arrangement, the power industry regulator said.

Distribution utilities and retail electricity suppliers are, likewise, ordered to inform their respective customers of the directive in the ERC advisory through a “bill insert.”

“In addition to the bill, insert DUs and RES shall inform their customers through any other available means but shall not be limited to: announcements through social media, radio station announcements, posting in bulletin boards of local government units and/or posting in the DU’s/RES’ website,” the ERC said.

The regulatory body also directed power generators or suppliers, Power Assets and Liabilities Management Corp., National Power Corp., National Transmission Corp., National Grid Corp. of the Philippines, Independent Power Producers, Independent Power Producer Administrators and Market Operator to extend the same 30-day grace period, staggered payment, and no disconnection policy to its customers.

Distributors are required to submit the following:

• power supply contract utilization report
• record of payments received from customers
• record of payment made to suppliers, covering the grace period and installment period

The advisory took effect immediately upon posting on the ERC’s website. — BM, GMA News