ERC orders power firms: Share bill relief burden

Power generators, grid operators and other industry players must extend payment relief to distribution utilities (DUs) to help ease the financial burden of protecting low-consumption households from electricity disconnections through December.

The Energy Regulatory Commission (ERC) on Tuesday ordered power suppliers to allow DUs to stagger their payments over at least three months, matching the relief granted to residential customers consuming no more than 200 kilowatt-hours (kWh) monthly.

The measure seeks to ease cash-flow pressures on utilities as they suspend disconnections over unpaid electricity bills for November and December.

Under the advisory, generation companies, the National Grid Corporation of the Philippines (NGCP), independent power producers, and other industry stakeholders must extend similar payment arrangements to distribution utilities.

Segregate amounts paid by consumers

“The DUs shall segregate the amounts paid by the consumers to determine the amount due to GenCos, PSALM, NPC, TRANSCO, NGCP, IPPs, IPPAs and MO, which shall be paid on a staggered basis for at least three months,” the ERC said in its advisory.

The regulator also required distribution utilities nationwide to suspend electricity disconnections for qualified households over unpaid November and December bills.

These consumers will be allowed to settle their electricity bills through staggered or deferred payments over at least three months.

“Payment may be spread over three months, with installments reflected in subsequent billing statements,” the ERC said.

However, the extended protection is subject to conditions.

Qualified households must settle all unpaid regular bills and installment obligations covering May to July by 26 November to remain eligible for the disconnection suspension.

Consumers with unpaid bills from August to October will also retain protection, provided they have fully settled their May-to-July obligations.

Excluded from extended disconnection ban

Residential customers consuming more than 200 kWh monthly and non-residential customers are excluded from the extended disconnection ban.

These customers must settle unpaid bills covering May to July by 26 November and those covering August to October by 26 December to avoid possible disconnection.