THE Energy Regulatory Commission (ERC) yesterday assured the Senate that they would implement a reduction in transmission charges on the second quarter of 2024.
Sen. Sherwin Gatchalian, the Department of Energy’s (DOE) budget sponsor, said the agency was given a budget of P888 million for 2024.
“So again it’s a welcome news to all of us and our consumers can expect a reduction of transmission rates or transmission charge on second quarter of 2024,” he said during the agency’s budget hearing.
Gatchalian, however, clarified that the ERC was still waiting for the comments of other related agencies like the National Grid Corporation of the Philippines (NGCP) before they could decide how much would be deducted in the transmission charges.
“The probability of seeing a significant reduction in our transmission charge is quite high, as too how much with the reduction that’s still being calculated but it will be significant,” he said.
He added: “Right now we are still in the process of conducting hearings and they have requested NGCP and other stakeholders to file their comments and submit their comments. All of those will be compiled and a final decision will happen by the end of the year.”
Senate Deputy Minority Leader Sen. Risa Hontiveros, who interpellated during the hearing, reiterated her appeal to the regulatory commission for the possibility of a consumer refund as well.
But it later explained that they are currently leaning towards only implementing a reduction of transmission charge because it’s easier to monitor.
“In terms of modality, I was advised that it’s easier to reduce the rates, it’s easier to monitor, it’s easier to apply, it’s either for the regulator to supervise the implementation of that reduction. So the regulator prefers that modality for ease of administration,” said Gatchalian.
The ERC, as part of its partial decision on NGCP’s performance and operations (phase 1) disallowed P200 billion worth of grid operator’s expenses related to “public relations, corporate social responsibility, representation and entertainment, advertising donation for COVID-19, charitable contributions, unfinished projects, and other miscellaneous expenses.”
While the NGCP may not be prevented from incurring such expenses, the ERC ruled that these should not be passed on to consumers.
The Senate also approved the proposed budget of DOE amounting to P1.6 billion for 2024.
They also approved the budget for National Electrification Administration amounting to P2.3 billion, National Power Corporation which (P1.3 billion), National Electrification Administration (P4.6 billion) and Philippine National Oil Company which has a proposed budget of P1.9 billion. (ABS-CBN News)
