ADVISORY

ADVISORY
17 August 2023

IMPLEMENTATION AND FILING OF CAPITAL EXPENDITURE PROJECTS
DURING EMERGENCY AND OTHER EXTRAORDINARY CASES

In view of the current typhoon season, all concerned Distribution Utilities (DUs) are hereby reminded of its obligation to restore service within the shortest time possible as provided in Section 1.2.1 of ERC Resolution No. 12, Series of 2006, 1 to wit:

Each Distribution Utility shall make reasonable efforts to avoid and prevent Interruptions of service. However, when Interruptions occur, service shall be reestablished within the shortest time practicable.

Related to this, please be advised that Section 20 of the Public Service Act has been amended to read as follows:²

SEC. 20. Acts requiring the approval of the Commission. – Subject to established limitations and exceptions and saving provisions to the contrary, it shall be unlawful for any public service or for the owner, lessee, or operator thereof, without the approval and authorization of the Commission previously had:

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(b) To establish, construct, maintain, or operate new units or extend existing facilities or make any other addition to or general extension of the service: Provided, That only assets that are useful and necessary for the provision of the public service shall form part of the rate base as determined and approved by the Administrative Agency: Provided, further, That construction of such asset and implementation of such project may be allowed for emergency and other extra-ordinary cases: Provided, finally, That the public service provider files for approval of such extension or construction of facilities within sixty (60) days from implementation of the project, and without prejudice to the final determination by the Administrative Agency if the said asset is useful and necessary for inclusion in the rate base. (Emphasis and underscoring supplied.)

Thus, DUs may implement capital expenditure (CAPEX) projects without prior approval from the Commission only if the project involves emergency and other extraordinary cases. “Emergency cases” abovementioned are those provided for in Section 3.4 of ERC Resolution No. 26, Series of 2009.3 On the other hand, “other extraordinary cases” abovementioned covers force majeure or fortuitous events as described in Section 3.3 of the same ERC Resolution No. 26, Series of 2009.

With the amendment of the Public Service Act, please be advised that the implementation of CAPEX projects considered as emergency or extraordinary cases shall now comply with the above-quoted Section 20 of the amended Public Service Act. Accordingly, DUs should file with the Commission their CAPEX Application involving emergency or extraordinary cases within sixty (60) days from the implementation of the project.

For guidance and strict compliance.

¹ Entitled, “Guidelines for Monitoring of Reliability Standards for Distribution Utilities.”
² Section 10, Republic Act No. 11659, entitled, “An Act Amending Commonwealth Act No. 146, Otherwise Known as the Public Service Act, as Amended."
³ Entitled, “Resolution Amending the Rules for Approval of Regulated Entities’ Capital Expenditure Projects.”

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Multiple CAPEX Projects Single FME CAPEX Projects

ERC ADVISORY
29 AUGUST 2023

SUSPENDING THE INCLUSION OF THE NATIONAL FRANCHISE TAX OF NGCP

In view of the promulgation of Resolution No. 10, Series of 2023, “A Resolution Suspending the Inclusion of the National Franchise Tax of the National Grid Corporation of the Philippines (NGCP) in the Total Monthly Transmission Cost Billing of Distribution Utilities” and its effectivity upon publication last 15 August 2023 in Daily Tribune, NGCP must cease charging the 3% franchise tax starting from its next billings to customers after 15 August 2023. This will cover the supply period of 26 July 2023 to 25 August 2023 and the succeeding months thereafter.

Corollary, Distribution Utilities (DUs) must no longer charge to their respective consumers the said 3% franchise tax in the DUs’ billing month of September 2023.

For guidance and strict compliance.

The Energy Regulatory Commission, together with the Department of Energy and Department of Social Welfare and Development, signed a Tripartite Advisory setting 1 January 2024 as the new deadline for the filing of application for the availment of subsidy under the Lifeline Rate Program.

Further, all Distribution Utilities (DUs) are directed to continue their intensified information dissemination and registration efforts on Lifeline Rate Program. DUs should continue accepting applications so that more qualified consumers will be able to benefit from the subsidy program.

For more details please see the full advisory below:

In compliance with the directives of President Ferdinand Romualdez Marcos, Jr., the Energy Regulatory Commission (ERC) and Department of Energy (DOE) issued a Joint Advisory to the concerned members of the Performance Assessment and Audit Team (PAAT) and other relevant parties with regard to the conduct of performance review and audit on the operations of the Transmission Network Service Provider and System Operator.

Please read full details of the Joint Advisory below:

The ERC and NEA issued a joint directive on the implementation of the lifeline subsidy rate program. Distribution Utilities are directed to implement begining 1 September 2023 the lifeline rate subsidy to 4Ps beneficiaries who have registered.

Please read full details of the Joint Advisory below:

The ERC and NEA issued a joint directive on the implementation of the lifeline subsidy rate program. Distribution Utilities are directed to implement beginning 01 January 2024 the lifeline rate subsidy to 4Ps beneficiaries who have registered.

Please read full details of the Joint Directive below:

The public is warned of unscrupulous individuals purporting as ERC Chairperson and CEO Monalisa Dimalanta soliciting money for the victims of Typhoon Goring.

See the full advisory below:

All interested parties who wish to attend in-person public consultation on 22 September 2022 (Friday), at nine-thirty o’clock in the morning (09:30 A.M.) to twelve o’clock noon (12:00 P.M.) at the 11th Floor, Multi Purpose Hall, Exquadra Tower, Jade Dr., Ortigas Center, San Antonio, Pasig City, on the above subject matter are required to register using the link below:

https://forms.gle/TpfZXFHe611LeMey9

Please be informed that representative per company is limited to two (2) slots only. Deadline of registration is on 21 September 2023 at 5:00 P.M.

For those attending online, the link is provided below:

https://zoom.us/j/91210941404
Meeting ID: 912 1094 1404

Please be guided accordingly.