Distribution Sector

Distribution Sector. The distribution of electricity to end-users shall be a regulated common carrier business requiring a national franchise. Distribution of electric power to all end-users may be undertaken by private distribution utilities, cooperatives, local government units presently undertaking this function and other duly authorized entities, subject to regulation by the ERC. (Sec. 22, RA 9136)

Distribution Utility refers to any electric cooperative, private corporation, government-owned utility or existing local government unit which has an exclusive franchise area to operate a distribution system in accordance with this Act. (Sec. 4 q, RA 9136)

INTER-CLASS CROSS SUBSIDY REMOVAL

Inter-Class Cross Subsidy Removal

Republic Act 9136, Section 74, Cross Subsidies

Cross subsidies within a grid, between grids and/or classes of customers shall be phased out in a period not exceeding three (3) years from the establishment by the ERC of a universal charge which shall be collected from all electricity end-users. Such level of cross subsidies shall be made transparent and identified separately in the billing statements provided to end-users by the suppliers.

The ERC may extend the period for the removal of cross subsidies for a maximum period of one (1) year upon finding that cessation of such mechanism would have a material adverse effect upon the public interest, particularly the residential end-user; or would have an immediate, irreparable, and adverse financial effect on distribution utility.

Inter-Class Cross Subsidy Removal as Issued by the ERC

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Year 2001

ERC CASE NO.
APPLICANT
2001-900 & 2001-646
Manila Electric Company (MERALCO)
2001-892
Cagayan Electric Power and Light Company, Inc. (CEPALCO)
2001-913
First Lanao Del Norte Electric Cooperative, Inc. (LANECO)
2001-914
Camarines Norte Electric Cooperative, Inc. (CANORECO)
2001-921
Surigao del Sur I Electric Cooperative, Inc. (SURSECO I)
2001-924
Quezon I Electric Cooperative, Inc. (QUEZELCO I)
2001-929
Bukidnon II Electric Cooperative, Inc (BUSECO)
2001-925
V-M-C Rural Electric Cooperative, Inc. (VRESCO)
2001-934
Samar II Electric Cooperative, Inc. (SAMELCO II)
2001-958
Davao Oriental Electric Cooperative, Inc. (DORECO)
2001-971
Misamis Occidental I Electric Cooperative, Inc. (MOELCI II)
2001-976
Nueva Vizcaya Electric Cooperative, Inc. (NUVELCO)
2001-980
Cebu III Electric Cooperative, Inc. (CEBECO III)
2001-981
Leyte V Electric Cooperative, Inc. (LEYECO V)
2001-982
Samar I Electric Cooperative, Inc. (SAMELCO I) part 1, part 2
2001-987
Mountain Province Electric Cooperative, Inc. (MOPRECO)
2001-996
Camiguin Electric Cooperative, Inc. (CAMELCO)
2001-997
Ifugao Electric Cooperative, Inc. (IFELCO)
2001-998
Quezon II Electric Cooperative, Inc. (QUEZELCO II)
2001-999
Sorsogon II Electric Cooperative, Inc. (SORECO II)
2001-1000
Camarines Sur IV Electric Cooperative, Inc. (CASURECO IV)
2001-1004
Surigao del Sur II Electric Cooperative, Inc. (SURSECO II)
2001-1014
Batanes Electric Cooperative, Inc. (BATANELCO)

Year 2002

ERC CASE NO.
APPLICANT
2002-140
Cagayan De Sulu Electric Cooperative, Inc. (CASELCO)