ERC urges public participation on proposed price control arrangements

The Energy Regulatory Commission (ERC) seeks the active participation of the general public in the upcoming public consultations on the Draft Determination issued on the respective price control arrangements proposed by Manila Electric Company (MERALCO), Dagupan Electric Corporation (DECORP), and Cagayan Electric Power and Light Company, Inc. (CEPALCO). The public consultation to be conducted by ERC aims to gather inputs, comments, and concerns on the said Draft Determination. The Draft Determination embodies the ERC’s initial position on the price control arrangements proposed by the said three (3) distribution utilities (DUs) entering the Performance Based Regulation (PBR) at the First Entry Point. It also describes the ERC’s preliminary evaluation of the said DUs’ proposed revenue and performance incentive schemes.

“The Draft Determination is not a final resolution and does not have any impact on MERALCO, DECORP and CEPALCO’s current distribution charges”, ERC Chairman and CEO Rodolfo B. Albano, Jr. clarified. “It (Draft Determination) was designed to present the ERC’s initial views on the price arrangements that will apply to these three (3) DUs when they enter the Second Regulatory Period and to give opportunity to interested parties to comment on it before a final determination is made”, Chairman Albano added.

In its Rules for Setting Distribution Wheeling Rates (RDWR) for Privately Owned Distribution Utilities entering Performance Based Regulation issued on July 26, 2006, the ERC undertook to publish a Draft Determination embodying the outcomes of its analysis of the three (3) DUs’ submissions and the reports prepared by its Regulatory Reset Experts.

The public consultations on the proposed price control arrangements are scheduled on the following dates and venues:
• June 26, 2007 at 9:00 am, ERC Main Office, Pacific Center Building, San Miguel Ave., Pasig City
• June 29, 2007 at 9:00 am, Dagupan Training Center, West Central Elementary School, A.B. Fernandez West, Dagupan City
• July 2, 2007 at 9:00 am, Southeast Asia Rural and Social Leadership Institute (SEARSOLIN), Xavier University, Fr. Masterson Ave., Upper Balulang, Cagayan de Oro City

“The general public and electric power industry stakeholders are encouraged to actively participate in the upcoming public consultations to assist the ERC in coming up with a sound final resolution on the price control arrangements for MERALCO, DECORP, and CEPALCO which will govern how their rates will be determined for the next four (4) years”, Chairman Albano concluded.

June 1 , 2007