48 Distribution Utilities Apply For Automatic Cost Adjustment Through ERC
The Energy Regulatory Commission (ERC) has received applications from 48 Distribution Utilities (DUs) in Luzon for automatic cost adjustment and true-up mechanisms covering the period from 2020 to 2022. This filing is in accordance with Resolution No. 14, Series of 2022. The ERC will thoroughly evaluate these applications to verify the recovery of pass-through costs implemented by the DUs and confirm the true-up of any other pass-through charges, if applicable.
However, as of the latest update, 20 Luzon DUs have yet to submit their applications. The following DUs have not complied with the filing requirement:
1. Abra Electric Cooperative, Inc. (ABRECO) 2. Albay Electric Cooperative, Inc. (ALECO) 3. First Bay Power Corporation (FBPC) 4. First Laguna Electric Cooperative, Inc. (FLECO) 5. Ibaan Electric Corporation (IEC) 6. Ilocos Norte Electric Cooperative, Inc. (INEC) 7. Isabela I Electric Cooperative, Inc. (ISELCO I) 8. Isabela II Electric Cooperative (ISELCO II) 9. Kalinga-Apayao Electric Cooperative, Inc. (KAELCO) 10. Masbate Electric Cooperative, Inc. (MASELCO) 11. Nueva Ecija I Electric Cooperative, Inc. (NEECO I) 12. Nueva Vizcaya Electric Cooperative, Inc. (NUVELCO) 13. Oriental Mindoro Electric Cooperative, Inc. (ORMECO) 14. Pangasinan I Electric Cooperative, Inc. (PANELCO I) 15. Pampanga II Electric Cooperative, Inc. (PELCO II) 16. Quirino Electric Cooperative, Inc. (QUIRELCO) 17. San Fernando Electric Light & Power Company Inc. (SFELAPCO) 18. Ticao Island Electric Cooperative, Inc. (TISELCO) 19. Zambales I Electric Cooperative, Inc. (ZAMECO I) 20. Zambales II Electric Cooperative, Inc. (ZAMECO II)
In an Advisory released on 10 May 2023, the ERC reminded the aforementioned DUs in Luzon that failure to submit their complete over and/or under-recovery application, along with the necessary supporting documents, within the designated non-extendable period of sixty (60) days, or until 30 May 2023, may result in the imposition of administrative sanctions and penalties as per the relevant ERC rules and regulations.
The ERC emphasizes that the failure of DUs to meet these requirements within the specified timeframe could lead to the suspension of their authority to impose pass-through charges on consumers. This measure ensures accountability and acts as a safeguard against placing undue burdens on electricity consumers.