ERC seeks final comments on Rules for Net Settlement Surplus
The Energy Regulatory Commission (ERC) posted the draft Rules for the Distribution of Net Settlement Surplus (NSS) in its website (www.erc.gov.ph) on 14 January 2009 for final comments from stakeholders of the electric power industry. The draft Rules were also published in a newspaper of general circulation.
The draft Rules are a revision from that version that was subjected to an initial public consultation on 29 October 2008. The schedule of activities leading to the issuance of the finalized Rules will be as follows:
Posting
on the ERC website and publication in a newspaper of general circulation
for comments of stakeholders |
14
January 2009 |
Deadline
of Comments |
28
January 2009 |
Approval
and Publication of the Rules |
March
2009 |
The net settlement surplus (NSS) is the excess payment by distribution utilities (DUs) resulting from the aggregate settlement transactions in the Philippine Wholesale Electricity Spot Market (WESM). It arises when the total payments of the DUs exceed the total payments to generation companies (GenCos). The modifications on the draft Rules include, among others: (1) inclusion and clarification of terms; (2) formula for more accurate allocation of the NSS; and (3) application of the NSS.
“The
ERC is promulgating these Rules to ensure that the Net Settlement Surplus (NSS)
is returned promptly to the concerned distribution utilities (DUs) in an orderly
manner for the eventual refund of the NSS to electricity consumers,” ERC
Chairperson Zenaida G. Cruz-Ducut said.
January 23, 2009