Resolution
Adopting a New System Loss Cap for DUsERC lowering system loss caps
The Energy Regulatory Commission (ERC), on August 4, 2008, set the Draft Resolution Adopting a New System Loss Cap for Distribution Utilities (DU) for public consultation. The Draft Resolution provides for the electricity consumption of a DU to be treated as an expense and not as part of system loss, and lowers the maximum recoverable rate of system loss from 9.5% to 8% for private DUs (or PUs) and from 14% to 11% for rural electric cooperatives (ECs), based on the total kilowatt-hour (kWh) generated, purchased and distributed. The existing system loss caps of 9.5% for PUs and 14% for ECs have not been adjusted since 1999 (9 years) for PUs and 2000 (8 years) for ECs.
The Draft Resolution, which is available for download at www.erc.gov.ph, has been set for public consultations on (1) August 26, 2008 (9:00 A.M., Tuesday) for DUs and consumers based in the Visayas and Mindanao, with the venue at the National Transmission Corporation (TRANSCO) office at Banilad, Cebu and (2) September 3, 2008 (9:00 A.M., Wednesday) for those stakeholders based in Luzon, at the ERC Hearing Room, 15th Floor, Pacific Center, San Miguel Avenue, Pasig City. Interested parties who may wish to submit to the ERC their comments thereon may do so on or before August 20, 2008 (Wednesday)
“I urge stakeholders of the electric power industry, especially the DUs and the consumers, to attend the public consultations in order for there to be spirited discussions of the issues pertaining to the charging of system losses, which surely will help the ERC in making its final determination. The ERC will listen with an open mind to the various stakeholders’ views and will consider them in the finalization of the Draft Resolution,” Chairperson Zenaida G. Cruz-Ducut concluded.
Resolution
Adopting a New System Loss Cap for DUs
August 6 , 2008