Tuesday, July 31, 2018

Unbundled electricity bills mandated by 2nd half


By Lenie Lectura -

THE Department of Energy (DOE) is eyeing to issue in the second half of the year a policy that will require distribution utilities (DUs) to unbundle electricity charge components to ensure greater transparency.
DOE Undersecretary Felix William B. Fuentebella said last week that the draft circular would have to undergo more public consultations before it is signed by Secretary
Alfonso G. Cusi.
“There are three more public hearings scheduled…in Palawan, Iliolio and Cagayan de Oro. The target issuance of the circular is in the second quarter,” Fuentebella said. The agency issued last month a draft circular adopting the framework for a uniform monthly electricity bill format.
“The DOE takes cognizance of the need to empower electricity end-users with greater understanding and transparency on the charges in monthly electricity bills by unbundling the electricity charge components, including those components that are not part of the unbundled rates but were collected from the consumers for security and reliability of services,” the draft circular stated.
The agency wants the DUs to reflect all corresponding charges they collect from all electricity end-users, including but not limited to generation, transmission, distribution, supply and metering charges, bill and meter deposits, including interest and any other charges that the Energy Regulatory Commission may approve.
It said the electricity bill should be prepared in a simple and easy-to-understand format.  It said that subject to ERC regulation, all distribution utilities should use a uniform bill format prescribed by the ERC.
“Except for competitive services components such as generation and supply, no charges shall be reflected in the bill and collected from the electricity end-users without the approval of the ERC,” the circular stated.
Section 25 of the Electric Power Industry Reform Act requires every DU to identify and segregate in its bills to end-users the components of the retail rate.
The circular, once approved, will apply to all distribution utilities, including privately owned utilities; electric cooperatives; local government-owned utilities; entities authorized to operate within economic zones; and other entities authorized by law to distribute electricity to end-users.
The bill should contain the generation charge, transmission charge, system loss, distribution charge, supply charge, metering charge, other charges, subsidies or discounts, senior citizen discount,  government taxes, local taxes, universal charge, missionary electrification charge, environmental charge, stranded debts and contract costs of National Power Corp., feed-in-tariff allowance and other charges, among others.
The bill should also contain the bill deposit including interest and the meter deposit including interest, billing summary, among others.

No comments:

Post a Comment