Hontiveros seeks ERC review of power charges before billing

MANILA – Sen. Risa Hontiveros on Monday called for a review of the Energy Regulatory Commission’s (ERC) automatic pass-through mechanism, saying electricity charges should first undergo regulatory scrutiny before being reflected in consumers’ monthly bills.

In a press release, Hontiveros said the current system allows distribution utilities to automatically collect pass-through charges, such as generation costs affected by fuel price fluctuations, before the ERC completes its review.

“Review first, collect later. Kailangang patunayan at ipaliwanag muna ang bawat sentimong sisingilin bago ito ipasa sa konsyumer (Every centavo to be charged should first be justified and explained before it is passed on to consumers),” she said.

Hontiveros noted that generation, transmission and system-loss charges make up about 77 percent of a typical residential electricity bill.

She said the automatic pass-through mechanism could reduce the incentive for power firms to secure cheaper electricity supply because higher costs are ultimately borne by consumers.

“Ito ang resulta ng automatic pass-through: walang insentibo ang mga kumpanyang humanap ng pinakamurang pagkukunan ng kuryente (This is the result of automatic pass-through: companies have no incentive to look for the cheapest source of electricity),” she said.

The senator issued the appeal after the National Grid Corporation of the Philippines announced a PHP0.77-per-kilowatt-hour increase in transmission charges, on top of Meralco’s earlier PHP0.34-per-kWh generation charge adjustment.

She said the combined increase could raise the monthly bill of a household consuming 200 kWh by about PHP222, an amount that could offset much of the PHP60 daily minimum wage increase in Metro Manila set to take effect on July 25.

Hontiveros earlier filed Senate Resolution No. 509, which seeks a Senate inquiry into the ERC’s policies on disputed electricity bills and rate adjustments, with the goal of identifying possible amendments to the Electric Power Industry Reform Act and related regulations to strengthen consumer protection. — Wilnard Bacelonia (PNA)