QuestionsQuestions (ERC)
The Universal Charge is for: (1) payment for NPC stranded debts in excess of the amount assumed by the National Government and NPC stranded contract costs of NPC; (2) payment for qualified stranded contract costs of distribution utilities; (3) missionary electrification; (4) equalization of taxes and royalties between indigenous/renewable and imported energy fuels; (5) an environmental charge equivalent to PhP0.0025 per kWh for a watershed environmental fund managed by NPC; and (6) a charge to account for cross-subsidies for a period not exceeding three (3) years.
It must be non-bypassable and collected monthly: (1) from all end-users by distribution utilities, or by suppliers in a contestable market; or (2) remitted directly to TRANSCO (or its concessionaire) by end-users or self-generation entities not connected to a distribution utility.
(1) TRANSCO or its Buyer or Concessionaire; and (2) distribution utilities or suppliers (in contestable markets) authorized to collect from end-users monthly.
An end-user is any person or entity requiring supply and delivery of electricity for its own use. The Rules also expressly cover persons using self-generation facilities as end-users for purposes of Universal Charge imposition.
Universal Charge is imposed on end-users (including those not connected to a distribution system) and self-generation facilities, but self-generation facilities are excluded/deferred for four (4) years from their imposition, provided they register with the ERC and PSALM.
They determine monthly sales in kilowatt-hours (kWh) per end-user. If un-metered, they determine the amount based on wattage or connected load. If multiple bills are issued in a month, the rules apply to each bill’s covered quantity.
It must include Universal Charge as separately identified line items per component, as approved by the ERC: stranded debts and stranded contract costs of NPC, stranded contract costs of distribution utilities, missionary electrification, equalization of taxes and royalties, watershed rehabilitation charges, and cross-subsidy removal charges.
The amount billed as Universal Charge must be paid in full and “shall not be included in the computation of Franchise Tax and any discounts granted to them by the Distribution Utility of Supplier.”
They must deposit the collections to PSALM’s Main Trust Account with a bank specified by PSALM. PSALM must create a separate account for each of the six (6) intended purposes, held in trust for future claims of the beneficiaries.
End-users or self-generation entities not connected to a distribution utility must remit Universal Charge directly to TRANSCO. TRANSCO bills them monthly, determines kWh usage (meter readings for end-users directly connected to TRANSCO; meter access or sworn usage info for self-generation facilities in the absence of meters), collects payment on the due date, and deposits collections to PSALM’s Main Trust Account.
Self-generation facilities must provide TRANSCO with information under oath on their usage for the monthly billing period. They are liable for any understatement of information provided to TRANSCO.
Except as provided for the four-year deferment for self-generation facilities, the collecting entity may enforce payment including disconnecting electric service. Self-generation facilities not within the deferment exception are subject to enforcement as well.
Each collecting entity must furnish PSALM monthly relevant information on billing and collection to monitor proper remittance. They must submit statements/information (by email or facsimile) on or before the 15th day of the succeeding month or no later than the remittance date; original documents must follow within ten (10) working days.
They must submit: (1) a certified statement of total actual billings separately per Universal Charge component (including total sales in kWh) with Annex forms; (2) a certified statement of total actual collections separately per component; (3) signature by the CFO or authorized representative; and if the utility is authorized to collect for its own stranded contract cost, it must report authorized amounts, billed amounts, collected amounts, and any withheld remittances.
TRANSCO must submit documents relating to invoices/collections from end-users not served by suppliers (if applicable) and all relevant documents/info on invoices/collections from self-generation entities. The Market Operator must submit, by the 15th of each month, a summary of actual meter readings in kWh for the preceding month, identifying each metering point and the corresponding distribution utility/supplier/end-user.
They must collect and retain Universal Charge in a fiduciary capacity and remit according to the Guidelines. They must maintain separate books of accounts for each Universal Charge component and make them available to ERC and PSALM upon two (2) days prior written notice.
The ERC monitors implementation and may impose fines and penalties for non-compliance as provided in the Guidelines on administrative sanctions pursuant to Section 46 of RA 9136.