• ERC pushes monthly tally of utilities’ overcharges

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    The Energy Regulatory Commission (ERC) is pushing for the monthly computation of the overcharges or undercharges by power distribution utilities (DUs), a move seen to benefit consumers as it could prevent overlapping charges. In a resolution made public on Thursday, the ERC proposed that the Rules Governing the Automatic Cost Adjustment and True-Up Mechanisms and Corresponding Confirmation Process for Distribution Utilities be amended. Under-recoveries or undercharging is incurred when the costs billed by suppliers are higher than the bills collected from customers, while over-recoveries or overcharging arises when the bills paid by customers are higher than the costs billed to the distributor by its suppliers.“At present, the true up or determination of over/under recoveries in the DUs implementation of their pass-through charges is done every three years, during the confirmation and verification proceedings,” ERC spokesperson Francis Saturnino Juan explained.“With the proposed amendments, the DUs will be authorized to include in their calculation any estimated over/under recoveries realized or incurred in the implementation of their pass-through charges for the previous months,” Juan said. This way, any over-recovery will immediately be refunded to the DUs’ customers. “On the other hand, there will no longer be a long delay for the collection of the DUs’ under-recovery,” Juan said.

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