ERC Revises Formula on System Loss Charges

Article excerpt

MANILA, Philippines - The Energy Regulatory Commission (ERC) has revised the formula in the computation of system loss charges that will be passed on to electricity consumers, to allow distribution utilities (DUs) to factor in under-and over-recoveries in such particular cost component in the bills to end users.While there are some formulas put forward by the DUs, including that of the Manila Electric Company (Meralco), the regulatory body resolved to come up with its own revised formula which it deems 'just and reasonable' when passed on to electricity consumers."The Commission agrees that there is a need to address in the confirmation of the system loss the mismatch between the billing period of the DUs and the power suppliers," the ERC said.In its revised formula, the regulator has considered system loss over- and under recoveries, but it has differentiated the computation of the charges for end-users under special rate programs as compared to those classified as regular customers."The kWh (kilowatt hour) sales to be used in determining the system loss shall be net of kWh distributed to special programs and sale for resale agreements, if such sales have different system loss charge rates from regular customers," the ERC has emphasized.The regulator similarly considered that the system loss rate be computed based on "the actual implemented system loss rate for each month during the recovery period," instead of the annualized calculation proposed by the DUs. …