Hontiveros

Refund for power consumers, not ‘discounts’

October 17, 2022 PS Jun M. Sarmiento 258 views

SENATOR Risa Hontiveros, on Monday, stated that the Energy Regulatory Commission (ERC) should not only award “discounts” after the planned weighted average cost of capital (WACC) reset for the transmission wheeling rates, but rather pay electric consumers “refunds” for having been overcharged for the exorbitant WACC covering the 4th regulatory reset period.

The WACC is the return a company expects on the money it has put into a business. It is part of what consumers pay monthly on their monthly electricity bills.

“Ilang taon nang sinisingil ang mga power consumers ng higit pa sa kung magkano lang dapat ang ating ibinabayad. Hindi lang dapat discount sa mga susunod na bills ang ibigay sa atin, kundi balik-bayad sa mga taon na hindi nangyari ang reset,” Hontiveros said.

Earlier, Hontiveros welcomed the announcement of ERC that they have started the process of resetting the transmission wheeling rates, which would most likely result in a reduction in the transmission fees.

However, ERC made it clear during the budget hearings that the implementation method for the resetting of transmission wheeling rates would not be in the form of refunds but rather a discount.

“Ang problema dito sa discount na para bang bibigyan ang mga consumers ng discount samantalang sa totoo lang ay galing naman ito sa sobrang siningil ng NGCP dahil malinaw ang mga kapalpakan ng lumang ERC. Hindi eksakto kung tatawaging ‘discount’, dahil parang ginigisa lamang ang ating consumers sa sariling mantika. Dapat itong bantayan ng husto ng buong taumbayan, siguruhin na magsimula sa tama dahil ang mga susunod na mga desisyon ay dito natin makikita,” she added.

“Paano naman iyong sobra-sobra palang ibinayad ng consumer the past several years, including the past regulatory periods, na hindi nga kaagad na-correct itong excessive na weighted average cost of capital?” Hontiveros asked.

She reasoned out that absent the conduct of the 4th regulatory reset, a determination of a judicious amount of over-recovery during that period should translate into a refund rather than as a discount under the 5th regulatory reset.

“Napako na sa napakataas na 15% ang WACC rate ng NGCP mula pa noong 2015. At consumers ang pumapasan ng napakabigat na dalahing ito. Nobody should be justly enriched at the expense of another, especially when it is the Filipino people. Let us give to power consumers our due,” Hontiveros concluded.