ERC opts to keep old formula in computation of gen charges NewsEconomy

by Lenie LecturaJuly 6, 2016

from Business Mirror

THE Energy Regulatory Commission (ERC) has moved to institutionalize an existing policy in the computation of power-generation charges.

ERC Resolution 16, Series of 2016, resolved to adopt the monthly computation of generation rates under Article 2, Section 2 of the Consolidated Rules and in the confirmation of the over- or underrecoveries of generation costs under Article 4, Section 2 of the same rules.

“Now, therefore, the ERC hereby resolves to adopt the policy as stated in the letter-reply to NPC [National Power Corp.] dated October 2008,” stated the ERC resolution.

It said that “all the gains that the DUs obtain from selling to the WESM [Wholesale Electricity Spot Market], as well as the excess kilowatt-hour sold back to the WESM, shall be reflected as deduction from the WESM generation cost and kWh purchased.”

 Meanwhile, “the losses incurred both in monetary and the corresponding excess kilowatt-hour sold back to the WESM due to trading of contracts shall be borne by the DUs as a result of the participation in electricity-market trading.”