Law Summary
Background on Time of Use (TOU) Retail Rates Approval
- The Commission approved TOU retail rates on April 13, 2005, via ERC Case No. 2004-178 involving NPC and PSALM.
- This approval served as a directive for all Distribution Utilities (DUs) to submit their TOU retail rate applications.
- Subsequent to this decision, various DUs filed their respective applications.
Development and Consultation of the TOU Implementation Rules
- To streamline application evaluation, the ERC drafted specific rules to govern TOU retail rates implementation across DUs purchasing power from diverse sources.
- These draft rules were subjected to a public consultation held on October 8, 2008, allowing stakeholder feedback.
- The Commission thoroughly reviewed and considered all comments and views received.
Adoption and Effectivity of the TOU Retail Rates Implementation Rules
- Following consultations and evaluations, the ERC formally adopted the finalized rules governing TOU retail rates for DUs.
- The resolution adopting these rules became effective immediately upon publication in a widely circulated Philippine newspaper.
- Copies of the resolution were disseminated to the University of the Philippines Law Center-Office of the National Administrative Register and all DUs.
Scope of Application
- The rules specifically apply to Distribution Utilities purchasing their power requirements from various sources, ensuring uniformity in the application of TOU rates.
Importance of the Resolution
- The resolution institutionalizes a clear regulatory framework for TOU retail rates, promoting transparency and systematic rate application.
- It assists in aligning retail rate structures with power procurement costs that vary according to time of use.
- Encourages efficient consumption and potentially improves demand-side management by reflecting cost variations in retail pricing.
Procedural Highlights
- The resolution sets forth procedures for DUs to file TOU retail rate applications.
- Establishes mechanisms for the ERC to evaluate and approve such applications based on the adopted rules.
Regulatory Compliance and Monitoring
- DUs are mandated to comply with the adopted rules and methodologies.
- The ERC retains oversight authority to ensure adherence and to adjust or re-evaluate the methodologies as necessary.
Conclusion and Institutional Endorsement
- The resolution is signed by the ERC Chairperson and Commissioners, signaling unified institutional support.
- It consolidates the ERC’s regulatory framework guiding TOU retail rates, supporting sectoral reforms under EPIRA.