Republic of the Philippines

ENERGY REGULATORY COMMISSION

A world class and independent electric power industry regulator that equitably promotes and protects the interests of consumers and other stakeholders, to enable the delivery of long-term benefits that contribute to sustained economic growth and an improved quality of life.


ERC PSA Caravan rolls into Region X

22 November 2022 /ERC-Planning and Public Information Service

The Energy Regulatory Commission (ERC) with the Department of Energy (DOE) and the Office of the City Mayor in Cagayan de Oro had an interactive exchange with the Distribution Utilities in Region X during the Power Supply Agreement (PSA) Caravan.

The Energy Regulatory Commission (ERC) with the Department of Energy (DOE) and the Office of the City Mayor in Cagayan de Oro had an interactive exchange with the Distribution Utilities in Region X during the Power Supply Agreement (PSA) Caravan.

CAGAYAN DE ORO CITY - The Energy Regulatory Commission (ERC) conducted the second leg of the Power Supply Agreement (PSA) Caravan on 15 November 2022 with the full attendance of all ten (10) Distribution Utilities (DUs) in Region X. All private DUs and electric cooperatives (ECs) actively engaged in discussions and finding solutions to address the increasing electricity rates in various parts of the country.

The PSA Caravan is a flagship program of the ERC to socialize proposed solutions and identify other immediate responses to cushion the effect of or arrest further increases in electricity prices. In almost all regions in the country, power rates have spiked due primarily to substantial increase in the global price of coal this year. Based on ERC records, power rates have increased at an average of more than 20% in August 2022 compared to the 2021 prices.

The stakeholders present during this second leg of the Caravan supported the solutions identified in the Laoag leg, including the review of PSAs to validate contracted capacities vis-à-vis demand requirements of the utilities, revisiting the DUs supply mix, diversifying generation source to include renewable sources and procuring a portion from the Wholesale Electricity Spot Market (WESM). One additional item raised by Region X electric cooperatives is the issue of over-contracting of supply, especially in view of the scheduled commencement of WESM operation in Mindanao in December 2022.

ERC Commissioner Floresinda G. Baldo-Digal emphasized that the identified suggested solutions, while seemingly minimal in impact when viewed in isolation, will have significant effect if explored in totality, resulting in lower rates for electricity consumers.

For his part, ERC Commissioner Marko Romeo L. Fuentes expressed the Commission’s appreciation with the successful turnout of DUs that participated in the Caravan.

The Office of Cagayan de Oro City Mayor represented by Councilor Roger Abaday expressed the City’s support to the conduct of the Caravan.

Representatives of Bukidnon Second Electric Cooperative Inc. (BUSECO), Camiguin Electric Cooperative  Inc. (CAMELCO), Cagayan Electric Power & Light Co. (CEPALCO), First Bukidnon Electric Cooperative Inc. (FIBECO), and Iligan Light & Power, Inc. (ILPI), Lanao del Norte Electric Cooperative Inc. (LANECO), Misamis Occidental I Electric Cooperative Inc. (MOELCI I), Misamis Occidental II Electric Cooperative Inc. (MOELCI II), Misamis Oriental I Rural Electric Service Cooperative Inc. (MORESCO I), and Misamis Oriental II Rural Electric Service Cooperative Inc. (MORESCO II) interacted with ERC and DOE.

The Region X leg of the Caravan coincided with the first 100 days milestone of ERC Chairperson Monalisa C. Dimalanta. In thanking the attendees for their participation, Chairperson Dimalanta also said, “[w]e will honor our learnings from you and the Laoag leg by taking them along with us in the next leg of this caravan. As ERC implements these programs, all your inputs will be magnified a hundredfold as we all learn and grow together to improve our services to our electricity consumers.”

Before the month of November ends, the PSA Caravan will cover the provinces of Iloilo, Davao and Isabela.

 


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