QuestionsQuestions (ERC)
The Universal Charge is a non-bypassable charge imposed on all End-Users of electricity for the recovery of Stranded Debts of NPC, Stranded Contract Costs of NPC and Distribution Utilities, Missionary Electrification, equalization of taxes and royalties on indigenous energy sources, environmental charges for watershed rehabilitation, and cross-subsidies removal, as mandated by Section 34 of RA 9136.
The Universal Charge shall be collected by Distribution Utilities, Suppliers in Contestable Markets, and the National Transmission Corporation (TRANSCO) or its Concessionaire from End-Users and Self-Generation Entities not connected to Distribution Utilities.
An End-User refers to any person or entity requiring the supply and delivery of electricity for its own use, including residential, commercial, industrial consumers, government agencies, persons in Economic Zones, and users of Self-Generation facilities.
Collecting Entities must compute the electricity sales monthly, include the Universal Charge as a separate item in the electric bills, collect the full amount without discounts, remit the collections to the Main Trust Account of PSALM, and submit monthly reports to PSALM.
Self-Generation Facilities are exempt from the Universal Charge for four (4) years from the imposition of the charge, provided they register with the ERC and PSALM.
The Collecting Entity has the right to enforce payment, which may include disconnecting the electric service of the End-User or Self-Generation Entity, except those covered by the exemption for Self-Generation Facilities.
The bill must separately identify Universal Charges for Stranded Debt and Contract Costs of NPC, Stranded Contract Costs of Distribution Utilities, Missionary Electrification, Equalization of Taxes and Royalties, Watershed Rehabilitation, and Removal of Cross-Subsidies.
Collecting Entities must submit certified statements of total actual billings and collections for each Universal Charge component, including total electricity sales, monthly to PSALM by the 15th day of the succeeding month, with original copies submitted within ten working days after remittance.
PSALM establishes the Main Trust Account where all collections are deposited, manages separate Special Trust Funds for each Universal Charge purpose, monitors proper remittance, and submits quarterly reports to the Department of Finance and ERC.
The ERC may impose fines and penalties as provided in Section 5 of the Guidelines to Govern the Imposition of Administrative Sanctions pursuant to Section 46 of RA 9136 for violations or non-compliance with these Rules.