A one-time refund of pass-on charges stands to benefit around 92,000 consumers of the More Electric and Power Corporation (MORE Power) in Iloilo City, estimated at P141 million.
“Pass-on charges are those billed by the supplier of MORE, which we also billed to our consumers. These included generation charge, transmission charge, systems loss charge, lifeline, and senior citizen charges,” Niel Parcon, vice president for Corporate Energy Sourcing and Regulatory Affairs of MORE Power, said in an interview on Monday, Nov. 13.
The refund covers the accumulated differences in the billed amount computed from Jan. 23 this year until September that will reflect a P2.7644 per kilowatt-hour rate reduction in the Nov. 18 to Dec. 14 billing cycle, he added.
The refund is mandated under Energy Regulatory Commission (ERC) Resolution No. 14, series of 2022, prescribing the revised rules on the automatic cost adjustment and true-up mechanisms and corresponding confirmation process for distribution utilities.
He said that during the computation of the bill, the distribution utility relied on the previous bill of their suppliers as the basis, resulting in the timing difference, especially since the cost of generation charge is on a downward trend.
“Under the new rule, once it goes beyond the 10 percent threshold, we are required to refund,” he said, which means that the over-recovery has already exceeded their revenue for three months by 10 percent, so ERC has ordered them to refund.
The order applies to all distribution utilities in the country, provided they breach the ceiling set by the ERC.
Parcon said all consumer classes, including residential, commercial, industrial, and government accounts, can benefit from the refund.Perla Lena/PNA