ERC suspends collections of congestion charges in Panay, Negros

The Energy Regulatory Commission has ordered the Philippine Electricity Market Corp (PEMC) to temporarily stop the collection of congestion charges in Panay and Negros, until the Cebu-Negros Submarine Cable is completely restored.

Also, the ERC said order covers the collection of congestion and other applicable charges, including line rentals. Likewise, it ordered the PEMC to refund payments made from June to August 2021, within two months.

“The Commission is of the view that the congestion and other charges that are attributable to the damage of the Cebu-Negros Submarine Cable, which was not caused by the consumers, should not be charged to them,” ERC Chairperson and Chief Executive Officer Agnes Devanadera said in an emailed statement.

Moreover, the ERC directed the PEMC to defer the payment of congestion and other applicable charges to generation firms affected by the outage of the Cebu-Negros Submarine Cable in June.

The suspension will be in effect until the complete restoration and operationalization of the transmission line, or until the ERC has deemed a more applicable pricing and settlement solution.

On June 15, the transmission line tripped due to the amphibious dredging activities conducted by the Department of Public Works and Highways (DPWH) on one of the lines.

This caused a reduced transfer capacity of the Cebu-Negros Submarine Cable, worsening congestion and limiting the available supply.

Diesel plants have since been tapped to compensate for the demand, bringing electricity rates higher in Panay and Negros.

“The Commission’s suspension of the collection of congestion and other charges that are attributable to the Cebu Negros Submarine Cable incident seeks to mitigate the impact of these incidents on our consumers in the affected areas,” said Devanadera.

Based on its mandate, the ERC will promote free and fair competition, and ensure reasonable rates through its prudent and equitable judgment.

For its part, MORE Electric and Power Corp., Iloilo City’s sole provider, welcomed the decision saying it will lead to cheaper rates moving forward.

“Together we aired that it is too unfair for the consumers to take on the burden that is not of their own making. Thank you for rallying with us,” MORE Power President Roel Castro said in a separate statement. —LBG, GMA News