ERC sets rules on Transmission Cost Recovery for PubCon
The Energy Regulatory Commission (ERC) sets the public consultation (PubCon) on the proposed “Rules for the Calculation of the Over or Under Recovery in the Implementation of Transmission Rates and the Corresponding Transmission System Loss Rates by Distribution Utilities” on July 7, 2006, nine o’clock in the morning (9:00 A.M.) at the ERC Hearing Room, 15th Floor, Pacific Center Building, San Miguel Ave., Pasig City.
“The proposed Rules which applies to all distribution utilities (DUs) aims, among others, to ensure full recovery of the allowable cost of transmission by authorizing a one-time determination of the over or under recovery on the DU’s transmission charges and the portion of the transmission in the system loss charge,” Chairman Rodolfo B. Albano Jr. said.
The Rules spells out the adjustment formula to be adopted by the DUs on the over or under recovery in the transmission rates and the corresponding system loss rate thereof from the time their unbundled rates were implemented up to April 2006. However, the adjustment can be billed by the DU to its customers only upon ERC’s verification which will be incorporated in the existing transmission rates.
“The proposed Rules complements the Transmission Rates Adjustment Mechanism (TRAM) promulgated by the ERC in September 2005 to include recovery of prior period adjustments in the transmission rate,” Chairman Albano concluded.
July 7, 2006