ERC Set to Publish Resolution on System Loss Cap

“The Energy Regulatory Commission (ERC) is set to publish its resolution providing for the distribution system loss cap of distribution utilities. This is a product of series of meetings and consultations between the ERC and stakeholders. 1-CARE Representatives Carlos Roman L. Uybarreta was also continuously consulted and gave his recommendations.

In the ERC Resolution, it is stated that the prescribed system loss cap as provided shall be effective on the next billing cycle of the distribution utilities’ customers. However, to allay the fears of the electric cooperatives, the ERC clarified that the majority of the electric cooperatives are within the system loss cap that will be implemented considering that the cap set only includes the distribution feeder loss cap. There will be an additional allowance of a minimum of one to two percent subtransmission and substation loss. For some of the electric cooperatives who may not be able to comply with the cap, section 4 of the rules provides that they may apply for an individualized distribution system loss cap.

The first public consultation on the implementation of the resolution was conducted last Friday at the new hearing room of the ERC which was attended by Representative Uybarreta and other representatives from electric cooperatives and private distribution utilities. Additional public consultations will be held in May 3 in Cebu and in May 4 in Davao.

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