ERC narrows no-disconnection shield

Electricity consumers using up to 200 kilowatt-hours (kWh) a month will remain protected from service disconnections until the end of the year, as the Energy Regulatory Commission (ERC) moves to extend but narrow the emergency relief amid continued high power rates.

ERC Chairman and CEO Saturnino Juan told reporters at the sidelines of the ASEAN Energy Business Forum in Pasay City that the agency will extend the no-disconnection policy from November to December, but only for residential customers consuming 200 kWh or less monthly.

“On the no-disconnection policy, we will issue it within the month also because it is supposed to end in October, and we have already discussed among the commission that we will extend it, but its scope will be limited,” Juan said.

“It will be limited to residential customers with consumption of 200 kilowatt-hours and below,” he added.

Juan said the ERC decided to narrow the coverage after distribution utilities and electric cooperatives raised concerns over delayed collections, particularly from large commercial and industrial customers.

“We have also received many requests from our utilities, including the electric cooperatives, because the no-disconnection policy applies to all their customers, including the large commercial and industrial customers, and their customers’ bills are not being paid on time,” Juan said.

“They also need to pay their suppliers and NGCP on time. That is why their cash flow is suffering. Their operations are affected because their cash flow is tight, and they are having a hard time,” he added.

The ERC, however, opted to retain the protection for smaller residential consumers as households continue to face elevated electricity costs.

“With the no-disconnection policy for residential customers, we can preserve the protection that we want extended to our more vulnerable customers, our residential customers, because we do understand that the situation is really difficult right now, plus power rates are still going up,” Juan said.

The existing no-disconnection policy runs through October and covers residential and non-residential consumers in the captive markets of distribution utilities nationwide for unpaid bills covering August to October.

The relief measures were introduced under Executive Order No. 110 following the declaration of a State of National Energy Emergency amid the Middle East conflict and its potential impact on energy supply and prices.