Manila: Senate President Sherwin Gatchalian on Wednesday called for the Energy Regulatory Commission (ERC) to conduct a comprehensive audit of electricity generation charges, suggesting that this initiative could lead to a reduction in power rates by ensuring that consumers pay only justified pass-on costs.
According to Philippines News Agency, Gatchalian emphasized that generation charges constitute the largest portion of consumers' electricity bills and should be closely examined to ensure that the costs passed on to consumers are reasonable. He stated, "Kung gusto nating pababain ang electricity bill, dapat ang pinakamalaking sinisingil sa bill ang tutukan natin (If we want to lower electricity bills, we should focus on the biggest component of the bill), which is the generation charge. Kailangan nating masiguro na tama at makatwiran ang ipinapasa o pass-on charges sa mga konsyumer (We need to ensure that the charges being passed on to consumers are accurate and reasonable)."
Gatchalian highlighted that the ERC confirmed during a recent Senate hearing that generation charges make up the largest part of electricity bills, underscoring the need for a thorough audit. He urged the ERC to provide a timetable for its fuel pass-through audit, along with an audit plan and updates on distribution utilities and generation companies that have not complied with regulatory requirements.
During the Senate hearing, the ERC mentioned its provisions for mandating refunds if audits reveal overcharging of consumers. Gatchalian asserted that a detailed audit of generation charges is vital for the government to reduce electricity rates, as these charges represent significant costs for consumers.
This initiative follows Gatchalian's filing of a bill to eliminate the system loss charge from consumers' electricity bills, in line with President Ferdinand R. Marcos Jr.'s directive during his fifth State of the Nation Address. Gatchalian also warned that ongoing non-compliance by distribution utilities with regulatory requirements might lead to a congressional review of their legislative franchises.
