Published
June 2, 2017, 10:01 PM By Myrna M. Velasco
To further reduce the
level of system loss being integrated in the charges to consumers, the Energy
Regulatory Commission (ERC) has been expediting its consultation process on
such regulatory framework.
The ERC announced that
it slated public consultations (pubcons) across grids – in north and south
Luzon areas to Visayas and Mindanao – from May 29 to June 1 this year.
“The public
consultations on the proposed system loss cap will initiate the process leading
to the approval of the final rules,” the ERC said.
ERC Officer-in-Charge
Alfredo J. Non noted that taking the consumers’ pulse on such edict will
hopefully enable them to set a framework “responsive to the needs of the
public.”
He said this is in line
with the government’s thrust “to unburden the general public from shouldering
the costs of system losses in the distribution of electricity.”
There had been
proposals to further reduce the cap on system losses that must be accounted for
in the pass-through cost in the consumers’ electric bills.
ERC qualified that its
proposed rules “intend to justify distribution system loss caps for all DUs
(distribution utilities) based on technical criteria and objectives of the
EPIRA (Electric Power Industry Reform Act) as it establishes separate loss caps
for technical and non-technical losses.” The regulatory body indicated that the
new rules will likewise “introduce incentives and/or penalties based on total
distribution system loss cap to promote efficient operation and service of the
DUs.”
Beyond lowering system
loss caps, there are also proposals to remove the corresponding value added
(VAT) charges levied to it, so it can help pare overall rates to consumers.
Once approved, this
will be enforced as a component of performance standard set for distribution
utilities, including electric cooperatives.
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