Outgoing ERC chief sees ‘more room' to lower power rates
Outgoing Energy Regulatory Commission (ERC) chairman and chief executive officer Monalisa Dimalanta, whose term ends on August 8, on Friday said more work needs to be done in the country's electricity sector as she sees more room for costs to be lowered for the benefit of consumers.
In an online press chat, Dimalanta was asked what legacy she will be leaving behind as chief of the power industry regulator.
'Starting January 2023, the generation charge to customers in the WESM (Wholesale Electricity Spot Market) was trending lower. This year, from January until May, we saw a significant lowering of rates in most regions in the country, except Region 2… as more energy projects came in. This has been the lowest generation rate in the last 10 years,' she said.
Data from the ERC showed that between January and May this year, the overall reduction in the average generation cost at P2.4 per kilowatt-hour corresponded with the decrease in the country-wide average electricity price also at P2.4 per kWh.
'I think the legacy I'm leaving is a state of a better market condition, but improvements are still needed," Dimalanta said.
The outgoing ERC chief added that 'I believe we can still lower electricity rates further throughout the country as we continue to conduct our fuel audits for electric cooperatives and distribution utilities.'
Dimalanta was referring to the show cause orders the ERC issued to 37 generation companies to explain their failure to comply with its directive to submit complete fuel purchase documents.
The submission of fuel purchase documents was necessary in validating the reasonableness of generation charges being passed on to consumers.
Dimalanta said that once the fuel purchase audit among nearly 40 generation firms is finished, consumers could expect a refund or lowering of electricity rates.
'There is more room for lowering of the rates if everybody is disciplined in following our respective mandates,' she said.
The outgoing ERC chief said the regulator is targeting to finish the fuel purchase audit 'by the end of the year.'
Dimalanta is also optimistic on the Retail Aggregation Program (RAP).
Under RAP, two or more electricity end-users within a contiguous area — or within the same boundaries in which electricity supply can be measured with metering devices — to combine into a single 'contestable customer' allowing them to choose their own electricity supplier to ensure transparent and reasonable pricing.
'I hope this is something that will really become widespread,' Dimalanta said.
'EPIRA mandated that this happens, that this power to choose should be realized,' she said.
Dimalanta resigned as chairperson of the ERC, cutting short her seven-year tenure, in relation to President Ferdinand Marcos Jr.'s post-midterm polls executive revamp.
She will be replaced by Atty. Francis Saturnino Juan, who previously served as executive director and general counsel of the ERC and currently as President of the Independent Electricity Market Operator of the Philippines. — BAP, GMA Integrated News
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