ERC orders 78 electric coops to reduce power rates

The Energy Regulatory Commission (ERC) granted provisional authority to 78 electric cooperatives (ECs) to reduce their power rates.

ERC Chairman Manuel R. Sanchez said that ERC is mandated to ensure a reduction in the rates of electric cooperatives commensurate with the resulting savings due to the condonation of their Rural Electrification loans.

The amount of rate reduction ranges from PhP0.0121/kWh to PhP0.7642/kWh. Said amount corresponds to the amount of loans condoned.

For purposes of transparency, the law requires that the approved reduction in rates will be reflected as a separate item in the consumers’ electric bills.

As of date, ERC has completed the evaluation of 22 more loan condonation applications and are now with its Legal Service, while 18 applications are in various stages of processing. Out of 120 electric cooperatives operating in the country, 2 coops have not yet submitted to ERC their loan condonation application.

ERC has been regularly conducting regional hearings for the purpose of issuing final authority to the coops. To date, public hearings in various provinces or cities were conducted by ERC for 28 coops, while 50 coops are already set for hearing.

List of 78 ECs to Reduce Electricity

June 25, 2003