ERC clarifies issuance of PA on the expanded lifeline rate structure
“Contrary to newspaper reports, the Energy Regulatory Commission (ERC) has not issued a Provisional Authority (PA) modifying the lifeline rate structure,” Chairman Rodolfo B. Albano, Jr. said in reaction to a news item that appeared in a major daily on June 27, 2005. “The ERC will act accordingly once applications for the restructuring of the lifeline rates are filed by the distribution utilities (DUs). Like any other application filed with the ERC, interested parties will be consulted as part of due process, and if evidence warrants, a Provisional Authority will be issued,” he added.
Pursuant to the Implementing Rules and Regulations (IRR) of Republic Act No.
9136 or the Electric Power Industry Reform Act (EPIRA), “the ERC may
grant provisionally or deny the relief prayed for not later than seventy-five
(75) days from the filing of the application….”. Thereafter, the
ERC shall conduct a formal hearing on the application or petition, giving
proper notices to all parties concerned and shall decide the matter on the
merits not later than twelve months from the issuance of the PA.
The EPIRA provides that the ERC shall set a lifeline rate for the marginalized
end-users which shall be exempted from the cross subsidy phase-out under the
Act mentioned above for a period of ten (10) years, unless extended by law.
The level of consumption and the rate shall be determined by the ERC after
due notice and hearing.
June 30, 2005