ERC sets MAR for the Second Regulatory Period
The ERC is currently in the process of setting the Maximum Annual Revenue (MAR) for the Second Regulatory Period covering January 2006 to December 2010 (5 years), as provided for in the Transmission Wheeling Rates Guidelines (TWRG) promulgated on May 29, 2003. Based on the timelines sent to TransCo, the final MAR will be set on April 30, 2006, not August 30, 2005 as alleged by TransCo.
For this Second Regulatory Period, hearings conducted were (ERC Main Office) on October 18, 2005 in Luzon; Visayas (ERC Cebu Field Office) on October 20, 2005; and Mindanao (ERC Davao Field Office) on October 17, 2005. Another round of hearings will be conducted on these three main islands for the presentation of evidences and witnesses on November 8, 10 and 11, 2005 in Mindanao, Visayas and Luzon, respectively.
The ERC set the deadline for the submission of written comments and oppositions to the application on November 18, 2005 and the Draft Determination will be issued by December 16, 2005. This Draft Determination will be subjected to public hearings after comments are submitted to the ERC (comments submission deadline – January 20, 2006) with the following schedules: February 2 and 3, 2006 for Visayas; February 9 and 10, 2006 for Mindanao; and February 16 and 17, 2006 for Luzon.
The TWRG sets out the methodology to be used in setting the transmission wheeling rates under the MAR cap that may be charged during the First, Second and the Subsequent Regulatory Periods.
Pursuant to Section 43(f) of the Electric Power Industry Reform Act (EPIRA), the Energy Regulatory Commission is authorized to adopt alternative forms of internationally-accepted rate-setting methodology as it may deem appropriate. The said methodology must ensure a reasonable price of electricity and shall be non-discriminatory.
Activity |
Timelines |
Conduct
of Hearings (TransCo Exposition) |
October
17, 2005 – Mindanao Area (ERC Davao Field Office) October 18, 2005 – Luzon Area (ERC Hearing Room – Manila) October 20, 2005 – Visayas Area (ERC Cebu Field Office) |
Conduct
of Hearings (Presentation of Evidence and Witnesses) |
November
8, 2005 – Mindanao Area (ERC Davao Field Office) November 10, 2005 – Visayas Area (ERC Cebu Field Office) November 11, 2005 – Luzon Area (ERC Hearing Room – Manila) |
Deadline
of Submission of Written Comments/Opposition to the Application |
November 18, 2005 |
ERC
to Issue Draft Determination |
December 16, 2005 |
Deadline
for Submission of Comments on the Draft Determination |
January 20, 2006 |
Conduct
of Public Hearings (Responses to Draft Determination) |
February
2-3, 2006 – Visayas Area (ERC Cebu Field Office) February 9-10, 2006 – Mindanao Area (Davao Field Office) February 16-17, 2006 – Luzon Area (ERC Hearing Room – Manila) |
Final
Price Determination |
April 30, 2006 |
October 25, 2005