TACLOBAN CITY — Electricity consumers in the Visayas could see lower power bills and receive refunds for possible overcharges following the Energy Regulatory Commission’s (ERC) suspension of excessive line loss and congestion cost (LLCC) charges, House Minority Leader and 4Ps Party-list Rep. Marcelino “Nonoy” Libanan said Sunday, August 16.
Libanan said consumers who were charged an additional P2 to P5.99 per kilowatt-hour because of excessive LLCC could be entitled to refunds once the ERC completes its review.
The lawmaker raised the issue during the Aug. 11 House energy committee hearing after the Eastern Samar Electric Cooperative Inc. (Esamelco) sought his assistance over surging LLCC charges imposed through the Wholesale Electricity Spot Market (WESM).
Esamelco estimated that excessive LLCC charges passed on to consumers in Eastern Visayas had reached about P1.55 billion since January.
On Aug. 13, the ERC ordered corrective measures after finding errors in the calculation of congestion-related electricity prices under certain conditions, particularly when the high-voltage direct current (HVDC) links connecting Luzon, Visayas and Mindanao became constrained.
The ERC directed the Independent Electricity Market Operator of the Philippines (IEMOP) to suspend the collection or payment of affected Line Rental charges and permanently correct the pricing methodology.
It also ordered an independent audit and a recalculation of market settlement allocations dating back to June 26, 2021. The review could lead to refunds for consumers who were overcharged, with adjustments potentially reflected over several billing periods.
“Consumers should not be made to shoulder the cost of the electricity market’s defective pricing and settlement system. If consumers were overcharged, they deserve to get their money back,” Libanan said.
(LIZBETH ANN A. ABELLA)
