Ensuring the power outages that regularly happen during the peak dry season months will cost Luzon and Visayas electricity users 12.4 centavos per kilowatt-hour starting next year.

The Energy Regulatory Commission (ERC) has authorized the collection of P3.05 billion in unpaid fees from the power reserves market. 

The amount, deferred from previous billing periods, will be charged to consumers beginning in January. 

According to the ERC, the collection will be staggered over three months for participants in the Luzon and Mindanao Wholesale Electricity Spot Market and six months for those in the Visayas. 

The corresponding rate increase will be P0.124 per kilowatt-hour (kWh) for Luzon and Visayas and P0.033 per kWh for Mindanao.

Deferred bill hikes

The reserves market, which facilitates the sale of ancillary services (AS) by power generators to the National Grid Corporation of the Philippines, was suspended earlier this year after contributing to higher power rates. 

Ancillary services provide backup power in case of generation or transmission issues.

In May, the ERC partially lifted the suspension to allow power generators to recover P1.7 billion in trading costs from March 2023 transactions. 

The latest approval covers the remaining unpaid amounts for February and March 2023.

The ERC emphasized that the collection ensures financial recovery for trading participants while minimizing the impact on consumers.