Utilities deadline on systems loss reporting extended

The Energy Regulatory Commission again extended the deadline for the submission of systems loss cap by distribution utilities after it received numerous letters asking for extension of the deadline. In a resolution, the commission has reset the April 30 deadline for filing of petitions to October 31.

It explained that on various dates, it has received letters from different DUs asking for the extension of the deadline because of difficulty in data gathering process.

ERC already issued a resolution in December, giving the power distribution utilities until April 30 this year to file their petitions on systems loss cap.

The deadline of the filing was still supposed to be on November 4, last year but ERC gave in to the request of the power utilities for extension of the deadline.

Along with the extension, the commission also warns distribution utilities to be careful in computing and not to pass on the systems loss to consumers.

"We have to be very sure that the data to be submitted by the DUs refer to those actually used, in place, and directly necessary in the delivery of power service to end-users," ERC chairman Rodolfo Albano, Jr. earlier said.

The commission said that under the guidelines for the application and approval of caps on the recoverable rate of distribution system losses issued by the ERC on September 29, 2004, all DUs are required to file a petition for distribution system loss caps. They were also mandated to segregate their technical, non-technical, and administrative system losses and propose a cap for each system loss.

The ERC will establish separate caps for each of the segregated losses based on load density, sales mix, cost of service, delivery voltage and other technical considerations that it may deem appropriate. System losses in excess of the cap will be borne by the DU and thus, cannot be passed on to the consumers. Such caps may vary once a DU introduces technical changes on its system subject to the approval by the ERC. Republic Act 9136 and the Philippine Distribution Code provide that the system loss prescribed under RA 7832 or the Anti- Pilferage of Electricity Act shall be replaced by caps to be determined by the ERC. The commission said that the current system loss caps under RA 7832 are pegged at 9.5 percent for privately owned DUs and 14 percent for the electric cooperatives (ECs), or actual losses, whichever is lower. - Wenna A. Berondo