ERC denies AEC's appeal for deferment of new SL cap

The Energy Regulatory Commission (ERC) denied on 07 December 2009 the appeal of Angeles Electric Corporation (AEC) to defer the implementation of the new system loss cap for private distribution utilities (DUs) of 8.5% starting in January 2010 billing.

AEC requested the deferment of the implementation of the new system loss cap of 8.5% citing that the manner of reading the meters of AEC customers must coincide with the NPC (National Power Corporation) meter reading and must be done slowly to mitigate its impact.  Further, AEC’s request is also grounded on the alleged needed replacement of customers’ electronic metering system to be capable of registering hourly load which, according to AEC, will take some time.

The ERC, upon review of documents previously submitted by AEC, particularly its Annual Reports for the years 2006 to 2008, discovered that the AEC’s system losses for the afore-cited periods were already well within the new cap of 8.5%.  The ERC thus denied the request of AEC to defer implementation of the new system loss cap of 8.5%.  Further, the mere replacement of the meter system or adjustment of meter reading for it to coincide with NPC’s billing period were deemed insufficient reasons to support the AEC’s appeal.  In a similar case, a letter dated 23November 2009 was sent to MERALCO (Manila Electric Company) wherein ERC likewise denied, based on reasons cited thereon, the MERALCO’s request to defer implementation of the new system loss cap.

“The ERC is working hard on lowering the system loss caps prevailing in the country to be gradually at par with those of other nations similar to the Philippines,” Chairperson Ducut concluded.

December 11, 2009

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