ERC Direct Meralco, electricity companies to extend bill payments

The Energy Regulatory Commission (ERC) is scheduled to issue a notice or order that will direct electric companies, such as Manila Electric Company (Meralco), to extend for at least 30 days the payments of customers’ bills in accordance with the prescription of the Law of the Republic. 11494 or the Bayanihan Law-2.

ERC Commissioner Floresinda B. Digal said the regulatory body’s mandate will run from late this week until early next week.

The Department of Energy (DOE) has requested the ERC since last week to issue the procedures and guidelines necessary for the implementation of its advice to effectively enforce the “minimum grace period of 30 days and staggered payment without interest, penalties and other charges for all payments owed within the community quarantine period in the electric power value chain to include generation companies, transmission services and distribution services ”.

The directive that was issued by the Secretary of Energy Alfonso G. Cusi mainly stipulated that all actors in the supply chain of the energy industry, including suppliers of fuel for electricity generation, must “observe the grace period and the staggered payment of unpaid bills provided for by law “.

In the case of Meralco’s customers, those on the 201 kilowatt-hour and higher consumption base had previously received a four-month amortization flexibility; And that was even extended by the utility company for another month or until October 31 of this year.

End users at the consumption threshold of 200 kWh or less had been given a payment margin longer than six months; or until November of this year.

The additional 30-day grace period under Bayanihan Act-2 would then provide an extended margin for electricity consumers to pay their electricity bills.

In the DOE notice, it specified that the extension of payments should apply to: suppliers of fuel resources for power plants; as well as private and state-owned generation companies (GenCos) “regarding the payment of electricity bills for the supply of electricity to DUs, retail electricity providers and directly connected customers.”

The order will also cover independent energy producers (IPP), mainly in remittances of payments from the State Corporation for the Administration of Assets and Liabilities of the Electricity Sector (PSALM); then the National Grid Corporation of the Philippines in relation to transmission services payable by GenCos, DU, directly connected customers and other end users.

Similarly, payments owed to the Independent Electricity Market Operator of the Philippines (IEMOP) for full trade amounts and other charges from participants of the Wholesale Electricity Spot Market (WESM) were prescribed to be included in the agreement. extended payment.

Additionally, retail electricity providers were also asked to extend the same payment leverage to their competing customers.

Despite the edict, and in order to alleviate cost impact and help manage cash flow in the energy supply chain, the Department of Energy still sought “immediate and proportionate remission of payments received from respective creditors and suppliers “.

And for energy customers who have the ability to pay their bills in full, the DOE said they are also encouraged to “continue to pay their bills within the original due dates.” (MMV)