QuestionsQuestions (ERC Resolution NO. 19)
Section 43(f) of RA 9136 (EPIRA) authorizes the Energy Regulatory Commission (ERC) to replace the system loss caps prescribed in Section 10 of RA 7832.
It provides that after due notice and hearing, the ERC shall prescribe the caps for system losses that a Distribution Utility (DU) can pass on to customers.
It requires all DUs to file with the ERC an application for approval of caps on the recoverable rate of distribution system losses.
A preliminary evaluation showed that the dates/inputs contained in the applications were insufficient to enable the ERC to make a reasonable determination of the new system loss caps.
They shall not be required anymore to file, and they shall not be sanctioned for failing to file within the deadline.
Yes. All ECs are required to file their respective applications using updated data after three (3) years from the effectivity of the Resolution and within a new deadline to be set by the ERC.
ECs are directed to use the three-year period to build up the pertinent data bases needed for the future filing of their applications.
Private DUs are transitioning to Performance-Based Regulation (PBR), while ECs will have a new rate-making methodology within the year; the Resolution aims to incorporate new loss-treatment and cap-setting policies into these respective frameworks.
The ERC’s new policies on the treatment of system losses and the setting of new system loss caps for private DUs shall be incorporated in the ERC’s evaluation of their respective PBR applications.
While waiting for the new rate-making methodology, the ERC shall consider incorporating its policies on the treatment of system loss and the setting of new system loss caps for ECs in the new rate-making methodology to be adopted.
Yes. The Resolution states that it shall take effect immediately.
The Resolution references Article 3.4 of the PDC, which requires due notice and hearing before the ERC prescribes system loss caps.
The Resolution indicates that existing application data were insufficient for ERC to determine new caps reasonably; thus, ECs need updated, better-supported data.
They shall be dismissed.