Objectives of the Rules
- Ensure transparent and reasonable electric power pricing within a competitive market.
- Guarantee full recovery of allowable transmission costs.
- Protect public interest affected by DU rates and services.
- Maintain quality, reliability, security, and affordability of electric power supply.
Scope and Applicability
- These Rules apply to all Distribution Utilities connected to the Grid.
Key Definitions
- Act: Republic Act No. 9136 (EPIRA).
- Distribution Utility (DU): Electric cooperatives, private corporations, government utilities or local government units with exclusive franchises for distribution.
- Energy Regulatory Commission (ERC): Independent quasi-judicial agency regulating electric power industry.
- Net Transmission Cost: Total charges by National Transmission Corporation (TRANSCO) or its concessionaire, including ancillary services and taxes but net of imbalance charges.
- Transmission Rates: Charges related to transmission costs as determined in the DU's rate unbundling application.
Calculation of Over or Under Recovery
One-Time Determination
- Existing transmission rates were fixed annually for four years incorporating removal of TRANSCO intra-grid cross subsidies.
- A one-time determination of over or under recovery from implementation of unbundled rates to effectivity of TRAM Guidelines is allowed.
Adjustment Formula
Recovery calculation is done per customer class using a detailed formula involving:
- Allowable Transmission Cost multiplied by power factor discounts and adjusted for purchased kWh.
- Transmission Charges per kWh and/or per kW billing demand.
- Coincident Peak allocation factor for customer classes.
- Sales data per month and customer class.
The result is expressed in PhP/kWh or PhP/kW depending on the billing method.
Billing of Adjustments
- Over or under recoveries are integrated into existing transmission rate components on customer bills.
- Conversion between PhP/kWh to PhP/kW is provided for billing consistency where necessary.
Filing and Documentation Requirements
Applications for over or under recovery undergo filing in accordance with specific ERC rules governing cost adjustments.
Required supporting documents include:
- TRANSCO invoices, vouchers, and official receipts.
- ERC Forms DU-M-01 and DU-M-02.
- Monthly Financial and Statistical Reports.
- Purchase and sales summaries.
- Other pertinent documents as needed.
ERC may grant provisional authority within 30 days after motion and review of application and comments.
Monitoring and Reporting
- Approved over or under recovery implementations require DUs to report every six months on status and remaining balance.
- Reports continue until full refund or collection is completed.
Penalties
- Violations of the Rules invite fines and penalties pursuant to administrative sanction guidelines under Section 46 of RA 9136.
Exceptions and Flexibility
- ERC may allow exceptions for good cause if in the public interest and compliant with existing laws and regulations.
Separability Clause
- Invalidity or unconstitutionality of any part does not affect the enforceability of remaining provisions.
Effectivity
- The Rules take effect fifteen (15) days after publication in a newspaper of general circulation in the Philippines.