Published
August 16, 2019, 10:00 PM By Myrna M. Velasco
The
Philippine Electricity Market Corporation (PEMC) has submitted to the Energy
Regulatory Commission (ERC) its proposed P0.05 per kilowatt-hour (kWh) refund
cap for the cost adjustments warranted in the net settlement surplus (NSS) to
trading participants in the Wholesale Electricity Spot Market (WESM).
That
was based on the P1.77-billion refund order of the ERC arising from
miscalculations on the NSS levied to WESM trading participants that include the
generation companies and distribution utilities.
The
governing body of the spot market said it will start the cost adjustment
allocation beginning in its July 2019 billing to trading participants – which in
turn, will also be reflected eventually in the bills of consumers.
Further,
PEMC and the market operator of WESM noted that they submitted to the ERC “the
plan of action for the succeeding months to allow for settlement of the
remaining balance of NSS allocation adjustment for the next 11 months” – and
that will commence in the next August billing cycle.
“Following
the ERC order to cushion the impact of NSS allocation adjustment to those who
have to collect, a rate adjustment cap of P0.05 per kWh is to be observed by
the distribution utilities,” PEMC has emphasized.
As
explained by PEMC President Oscar E. Ala, “we are rectifying the misallocation
of the NSS through a refund to the market participants who received less than
what was due them while collecting from the others who have received more.”
He
provided an analogy that this is like balancing the allowance that a parent
would supposedly give to his son or daughter, so not one of them will have more
while the other is being shortchanged.
“This
is similar to a situation wherein you are supposed to give your son and
daughter P5.00 and P10, respectively. However, you inadvertently gave your son
P10 and your daughter P5.00. And as a parent, one has to correct the amounts
given to each,” Ala expounded.
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