ERC to review full cost recovery under electrification EO —CEO

The Energy Regulatory Commission (ERC) will abide by the executive order issued by President Rodrigo Duterte directing it to review full cost recovery as part of the government’s goal to achieve total household electrification by 2022, its CEO said Sunday.

In a Super Radyo dzBB interview, ERC Chairperson and Chief Executive Officer Agnes Devanadera said the Executive Order (EO) 156 issued by Duterte on Thursday would help ailing electric cooperatives, especially in economically unviable areas, to achieve an inclusive and nationwide access to electricity.

Also, the EO allows the transfer of the power to exercise step-in rights and take over ailing electric cooperatives from the National Electrification Administration (NEA) to the Office of the President.

“Dito, pinapareview din naman sa amin ‘yung tinatawag na cost recovery. Pinapatignan pa rin ‘yon sa amin kasi nga kailangan mag-issue na rin kami ng additional guidelines,” Devanadera said.

(In this EO, we need to review the cost recovery. We need to look at that as we also need to issue additional guidelines.)

Under Section 2 of the EO, the ERC shall “promulgate rules in computing rates that allow full cost recovery for the facilities built by microgrids, distributed energy resources (DERs) and other alternative electric service providers.”

Moreover, the ERC is ordered to impose fines and penalties against non-compliant distribution utilities, and may recommend the revocation of their franchises to Congress.

“Nag-umpisa kasi ang ERC nang nagpe-penalize kami ng mga aksyon ng kahit na distribution utilities. Maraming penalties, maraming orders kami na inilabas. Ito ang sinasabi dito sa EO 156 na kailangan mag-impose rin kami, at nag-impose nga talaga kami ng fines and penalties,” Devanadera said.

(The ERC started by penalizing the acts of even the distribution utilities. We have issued lots of penalties and orders. This is what is stated in EO 156 and we continue to do so.)

Devanadera said it is easier for them and the government to monitor different distribution utilities to penalize them accordingly and separately.

She added that the ERC continuously monitors the electricity rates per month and seeks a decrease in power rates based on a scientific computation. If they find anything that needed to be refunded, it would be applied on the present bill.

Another agency mandated in the EO 156 is the Department of Energy (DOE) which is tasked to to identify “unviable, unserved, underserved and poorly served areas within the franchise areas of distribution utilities.”

Meanwhile, the National Electrification Administration (NEA) shall “coordinate with the DOE and extend the necessary assistance to enhance distribution development in pursuit of the total electrification of the country.” —LBG, GMA News