GMA Brandtalk
Tracking
Archives
ERC asks generation firms to explain failure to submit fuel purchase data
The Energy Regulatory Commission (ERC) on Wednesday said it has issued show cause orders to nearly 40 generation companies to explain their failure to comply with its directive to submit complete fuel purchase documents.
In a statement, the ERC said submission of fuel purchase documents was necessary in validating the reasonableness of generation charges being passed on to consumers.
The power industry regulator said, in various separate orders issued between December 2022 and March 2024, it required the submission of complete sets of fuel cost data and documents covering the period from January to October 2022 “to ensure that only reasonable and justifiable fuel expenses are charged to consumers in the exercise of its regulatory mandate.”
With the issuance of show cause orders, the ERC sought the explanation of a total of 37 generation companies for failing to act on its directives.
The 37 power generation companies issued with show-cause orders are the following:
- Anda Power Corporation
- Angeles Power Inc.
- Bukidnon Power Corporation
- Calamian Islands Power Corp.
- Delta Power Inc.
- DMCI Power Corp.
- DMCI Masbate Power Corporation
- KEPCO SPC Power Corporation
- King Energy Generation Inc.
- Masinloc Power Partners Co. Ltd.
- Minergy Power Corporation
- Nickel Asia Corporation
- North Bukidnon Power Corporation
- OrMin Power Inc.
- Palawan Power Generation Inc.
- Panay Energy Development Corporation
- Peakpower Soccsargen Inc.
- Peakpower Bukidnon Inc.
- Peakpower San Francisco Inc.
- Power One Corporation
- Powersource Philippines Energy Inc.
- San Miguel Energy Corporation
- SMC Consolidated Power Corporation
- Siquijor Island Power Corp.
- San Miguel Consolidated Power Corporation
- SPC Island Power Corporation
- Strategic Energy Development Inc.
- Therma Luzon, Inc.
- Toledo Power Corporation
- Western Mindanao Power Corporation
- FDC Misamis Power Corporation
- GNPower Dinginin Ltd. Co.
- GNPower Mariveles Energy Center Ltd. Co.
- Mapalad Energy Generating Corporation
- Sarangani Energy Corporation
- Palm Concepcion Power Corporation
- Supreme Power Corporation
The ERC said the generation firms were directed to submit the required documents and a “verified explanation” within 15 days from receipt of the show-cause orders.
The regulatory body said the power facilities must justify why no administrative penalty should be imposed for their failure to comply with its directives, “in accordance with Sections 43(o) and 43(r) of Republic Act No. 9136, or the Electric Power Industry Reform Act (EPIRA), and with the terms of their ERC-approved power supply agreements (PSAs) with various distribution utilities (DUs).”
The ERC said fuel invoices must be submitted on a monthly basis to support pass-through fuel costs reflected in the billings of generation companies.
It added that fuel invoices are necessary for DUs to verify whether the volume, price, and efficiency rates of pass-through costs fall within the formula and cap prescribed by the regulatory body in the order or decision approving the implementation of their PSAs.
If no sufficient basis is found for the recovery of the costs, they cannot be charged to consumers, or must be refunded if already billed, according to the ERC.
The regulator said that failure by either DUs or generation firms to submit the required documents and to validate the pass-on charges may result in administrative liability and the imposition of fines.
"The ERC continues to conduct rigorous fuel audits to make sure that only fair and reasonable costs are being charged by our regulated entities. We owe it to the Filipino consumers to protect them from unnecessary charges and ensure that they’re not paying more than they should for electricity," said ERC chairperson and CEO Monalisa Dimalanta.
"We likewise remind generation companies and DUs to fully cooperate and comply with these requirements, so we can uphold transparency and deliver power at the least cost possible," added Dimalanta.—LDF, GMA Integrated News
