ERC to issue new rules on time-of-use rates

The Energy Regulatory Commission (ERC) will issue new rules on the implementation of time-of-use (TOU) retail rates for the country’s distribution utilities (DUs) sourcing their entire power requirements from the National Power Corp. (Napocor).

ERC chairman Rodolfo Albano Jr. said the new rules, which will still be subject to a public consultation, will be consistent with the Electric Power Industry Reform Act (EPIRA).

A TOU rate is defined as the cost of power billed based on hourly generation rates.

Albano said the rules aim to ensure and maintain the quality, reliability, security and affordability of the supply of electric power.

He said these will also ensure transparent and reasonable prices of electric power service in a regime of free and fair competition and to achieve greater operational and economic efficiency.

Albano said the rules will also protect public interest as these affect the rates and services of DUs.

The ERC chief said they would come up with these rules to provide the DUs a process for filling applications for the approval of their new supply and metering charges for the TOU customers.

Among the main objectives of these rules, he said, is to ensure recovery of allowable generation costs and other costs associated with systems loss cap.

Systems loss refers to the difference between the kilowatt-hour (kwh) purchased and/or generated and kwh sold by a DU expressed as a percentage of kwh purchased and/or generated.

He said these rules shall apply to DUs sourcing 100 percent of their power requirements from Napocor that have not yet filed their application for TOU retail rates.

DUs sourcing power from both Napocor’s main grid and off-grid areas but only with respect to their customers in the main grid, he said, are also covered by these rules.