QuestionsQuestions (ERC Resolution NO. 09, S. 2009)
It is based on Section 43(f) of Republic Act No. 9136 (EPIRA), which authorizes the ERC to determine, fix, and approve methodologies for retail rates of Distribution Utilities (DUs).
To establish a process for computing the over or under recovery arising from a DU’s implementation of transmission rates, so the amounts may be refunded or collected through ERC-approved mechanisms.
All Distribution Utilities (DUs) connected to the Grid, including entities defined as DUs under EPIRA (ECs, private corporations, government-owned utilities, or existing LGUs with exclusive distribution franchises).
Net Transmission Cost refers to TRANSCO (or its buyer/concessionaire) transmission-related charges net of imbalance charges, including ancillary/connection/power cost delivery service and VAT, but only costs that are prudently incurred, actually paid for, verifiable, reasonable, and eligible for recovery under ERC rules.
Transmission Rates are the charges associated with transmission cost incurred by the DU that have been determined by the ERC in the DU’s unbundling of rates application.
From the time the DUs implemented their unbundled rates up to the effectivity of the TRAM Guidelines (and the calculations are described as up to April 2006 or the month before new transmission rates could be implemented under TRAM Guidelines).
It computes an amount per customer class in PhP/kWh by aggregating monthly differences between allowable transmission cost and transmission recovery, weighted by each month’s kWh sales for that customer class.
Because it allocates allowable transmission costs to each customer class based on the coincident peak contribution reflected in the last approved unbundled rates of the DU.
It represents the portion of transmission charges collected/realized for the month, computed as (Transmission Charge in PhP/kWh × kWh sales) plus (Transmission Charge in PhP/kW billing demand × kW billing demand), as applicable by customer class.
NPFD is Net Power Factor Discount, derived from Gross PFD less (i) power factor discount granted by the DU and (ii) amounts paid under a third-party business agreement for power factor improvement; NPFD is multiplied by a 50% share and passed on by the DUs to customers.
It shall not exceed 50% of the Gross PFD.
It is the sum of kWh purchases from all suppliers corresponding to the kWh sales billed the transmission charge for the month less ODPS (One-Day Power Sales).
By incorporating the rate adjustment into the existing transmission rates component (in PhP/kWh) of customer bills; if the DU’s component is in PhP/kW, the calculated PhP/kWh must be converted to PhP/kW using the provided conversion formula.
They must be filed in accordance with Section 1 of Article 6 of the “Rules Governing the Automatic Cost Adjustment and True-Up Mechanisms for Distribution Utilities.”
Invoices from TRANSCO; vouchers and official receipts of payment of TRANSCO invoices; ERC Forms DU-M-01 and DU-M-02; monthly financial and statistical reports (MFSR forms); summary of monthly purchased kWh corresponding to monthly billed kWh sales; and other documents deemed relevant by the ERC.
After six (6) months from implementation, and every six (6) months thereafter, until the total amount has been fully refunded or collected.
Violations may be subject to fines and penalties under the Guidelines to Govern the Imposition of Administrative Sanctions in the Form of Fines and Penalties Pursuant to Section 46 of EPIRA.
Yes. The ERC may allow an exception where good cause appears, if the exception is in the public interest and not contrary to any law, rules, or regulations.
Fifteen (15) days after completion of its publication in a newspaper of general circulation in the Philippines.