Automatic adjustments mandated by law-ERC
The Energy Regulatory Commission (ERC) clarifies that the Automatic Generation Rate Adjustment (AGRA) mechanism allowed under the June 2007 amendments to the Electric Power Industry Reform Act of 2001 Implementing Rules and Regulations (EPIRA IRR) is intended to shield consumers from the burden of additional costs arising from deferred charges’ cost of money or interest expense.
The
statement was issued in response to allegations made by a consumer group to
scrap the AGRA, among others. “The said adjustments, though automatic,
are still subject to ERC’s verification and confirmation. Also, be it
emphasized that the basic AGRA formula underwent public consultations before
it took effect,“ ERC Commissioner and Officer-in-
Charge Alejandro Z. Barin said.
As it stands, the policy governing the confirmation process is currently being enhanced and will be subjected to exhaustive public consultations once completed. Confirmations done in the past resulted to some Distribution Utilities (DUs) refunding the excess amounts collected from their customers.
“The ERC remains faithful to its mission of promoting and protecting the long-term consumer interests in terms of quality, reliability, and reasonable pricing of a sustainable supply of electricity,” Commissioner Barin concluded.
March 19, 2008