ERC to hold public consultation on Universal Charge Guidelines
06/11/2003

The Energy Regulatory Commission (ERC) is set to hear comments or issues on the proposed guidelines governing the collection, remittance and disbursement of the Universal Charge (UC) in a public consultation to be held at the ERC Office on June 20, 2003.

According to ERC Chairman Manuel R. Sanchez, “there is a need to establish the guidelines to ensure that the objectives of the universal charge are achieved.” He emphasized the urgency of said guidelines since the distribution utilities have already started charging the missionary electrification and environmental charge components of the universal charge from their customers.

Chairman Sanchez added that the UC guidelines that will have to be approved by the Commission should take into account the parameters of transparency, accountability and administrative feasibility.

The universal charge is imposed for missionary electrification, watershed rehabilitation and management, recovery of stranded debts and costs of NPC, recovery of stranded contract costs of eligible contracts of distribution utilities, and other mandated purposes. It is passed on and collected from all end-users of electricity on a monthly basis. To make the charging of UC transparent, each of its components shall be reflected as a separate item in the consumer’s electric bill.

Under the law, ERC shall determine and approve the application for the availment of the universal charge, which is borne by all electricity end-users. The distribution utility or the National Transmission Company (TRANSCO) collects the UC and remits it to the Power Sector Assets and Liabilities Management (PSALM) Corp. In turn, PSALM is tasked to administer the funds generated from the universal charge and disburse said funds in accordance with the intended purposes.