QuestionsQuestions (ERC Resolution NO. 02, S. 2011)
Sections 32 and 34 of R.A. No. 9136 (EPIRA) provide for a UC to be determined, fixed, and approved by the ERC, to recover, among others, NPC stranded contract costs and stranded debts.
It refers to the excess of the contracted cost of electricity under NPC’s eligible contracts with IPPs over the actual selling price of the contracted energy output in the market, where such contracts were approved by the then ERB as of December 31, 2000.
It refers to any unpaid financial obligations of NPC that have not been liquidated by the proceeds from the sales and privatization of its assets.
Under Section 4(b)(ii) Rule 17 of the IRR, the ERC verifies the reasonable amounts of claims petitioned by PSALM and determines the manner and duration for full recovery.
The duration must not be shorter than fifteen (15) years nor longer than twenty-five (25) years.
Pursuant to Section 5 Rule 18 of the IRR, the UC shall be a non-bypassable charge collected from all end-users, including self-generating entities, following the rules on UC collection.
No. Section 7 Rule 18 of the IRR provides that self-generating facilities registered with the ERC and PSALM are not covered by the imposition of the UC for four (4) years from its imposition.
The fund is created by PSALM to cover disbursements for the purposes specified by EPIRA, disbursed only in an open and transparent manner under ERC guidelines and procedures.
The Revised Guidelines and Procedures Governing Remittances and Disbursements of the Universal Charge promulgated by the ERC on January 5, 2006.
ERC Resolution No. 4, Series of 2007, titled “A Resolution Adopting Rules for Recovery of NPC Stranded Contract Costs (SCC) and Stranded Debts (SD) Portion of the Universal Charge.”
To provide NPC and PSALM guidance in their future filings of SCC and SD, and to allow comments from stakeholders.
The proposed amendments were posted on November 23, 2010; the deadline for comments was set on December 24, 2010. MERALCO and PSALM submitted comments on December 23 and 29, 2010 respectively.
Manila Electric Company (MERALCO) and PSALM.
It shall take effect on the fifteenth (15th) day following its publication in a newspaper of general circulation.
It states that after thorough and due deliberation, and following posting for comments and receipt of comments, the ERC approved and adopted the amended rules.
Copies must be furnished the University of the Philippines Law Center—Office of the National Administrative Register (UPLC-ONAR) and all entities engaged in the generation, transmission, distribution, and supply of electricity.
Annex 1 contains the Amended Rules for Recovery of NPC Stranded Contract Costs and Stranded Debts Portion of the Universal Charge, which is attached and made an integral part of the resolution.