THE Energy Regulatory Commission (ERC) on Thursday requested distribution utilities and generation companies to stagger possible increases in charges for May.
In an online briefing, ERC Chairman and CEO Monalisa Dimalanta said electricity charges had gone up for the month because of the high demand in April. Several power plants also experienced forced outages, which in turn forced distribution utilities and generation companies to resort to more expensive forms of fuel for electricity.
"For the month of April, we admit that we expected that our large hydro plants will be operating less than usual because of the extreme heat. What we did not expect was that our coal and natural gas unexpectedly tripping as well. The plants that saved the whole system were our diesel plants but these are more expensive," Dimalanta said.
"But since we used them during the period, we definitely must pay for the usage. So, expect that there will indeed be increases in electricity rates for May. On that note, we are appealing to the DUs (distribution utilities) to [stagger the increases] on their own accord. However, we still cannot estimate how high the increases will be, as pricing is different for 141 distribution utilities in the country," she said.
The ERC said it made the request in line with its order to temporarily suspend the operations of the Wholesale Electricity Spot Market (WESM) in Luzon and Visayas during red alert periods.
Data from the ERC showed that electricity charges went up in the first four months of 2024.
In the Luzon grid, red alert periods lasted up to 20 hours and 46 minutes in the first four months of the year. There were no red alerts during the same period in 2023.
Red alerts for the Visayas grid rose to 24 hours and 14 minutes from 3 hours and 59 minutes during the first four months of 2023.
Dimalanta said the suspension order for WESM was mainly due to the high heat index, which prompted other agencies to issue measures to help assist the public and also made other regions declare a state of calamity.
"What were the considerations by the commission when we issued this order? First, is what we are all experiencing today which is the unusual heat index that we have all been experiencing since this month of April. The second consideration was the data from the Department of Energy, where they have recorded this almost instantaneous significant increase in the demand corresponding to the heat index," Dimalanta said.
Dimalanta reminded distribution firms and generation companies to think of the consumers before charging higher electricity rates in May.
"We have to continue to be mindful, as there are utilities who are fully exposed to the spot market. We at the ERC implore them, don't fully charge your customers. It is your duty to contract electricity so you are not fully exposed to higher changes in electricity prices," she said.
Read The Rest at :
