The Energy Regulatory Authority (ERC) has begun publishing a nationwide review of Power Supply Agreements (PSAs) to assist electric cooperatives (ECs) in formulating immediate and medium-term measures to address the high cost of electricity in the country.
The PSA Convoy, an initiative of the ERC and the Department of Energy (DoE), was officially launched in November
It aims to evaluate primarily the generation component of consumers’ electricity bills. Generation fees make up approximately 60 percent of the energy bill and account for the cost of power generated and sold to distribution utilities (DUs) by generation companies under production sharing agreements or through the Wholesale Electricity Spot Market (WESM), which the utilities then supply to households. Client.
As of August 2022, generation fees have increased by more than 20 percent compared to 2021 generation shipments through Luzon, Visayas and Mindanao, according to the ERC.
The statement added that the generation rate increase is mainly driven by the passing component of fuel cost rates, specifically coal and the upward adjustment in the foreign exchange rate.
Egyptian Red Crescent Commissioner Alexis Lombatan said in a statement on Wednesday:[T]The PSA convoy is here so that we can look at your PSAs and find immediate and long term solutions for the depleted uranium units to be able to sustain themselves and also for the consumers to enjoy lower electricity rates. This is a widespread industry concern. That is why we as regulators are now taking a proactive stance.”
DoE representatives joined the ERC delegation, which was made up of representatives from the commissioners’ offices and from the various units involved in the PSA assessment. The Department of Energy and the Equity and Reconciliation Council worked together to address the concerns of various European groups.
The Open Forum featured a large number of ideas and best practices which led to a fruitful exchange of possible solutions from the participating European groups. Economic groups that participated in the caravan include Central Pangasinan Electric Cooperative Inc. and Ilocos Norte Electric Cooperative Inc. and Ilocos Sur Electric Cooperative and Pangasinan III Electric Cooperative Inc. and Abra Electric Cooperative Inc. and Mountain Province Electric Cooperative Inc.
“[The] PSA Caravan seeks to enable the cooperative to move to the next level in terms of commitment to our people, the consuming public. If our efforts are going to lead to lower energy rates, at this point in time, given the circumstances, I think regardless of our mandate, it’s a personal achievement for us because at the end of the day, we’re all energy consumers,” Lumbatan concluded.