Power distributors’ deadline for tariff proposals extended – BusinessWorld Online
THE Energy Regulatory Commission (ERC) said private distribution utilities (PDUs) have been allowed more time to file their proposed electricity tariffs.
In a resolution approved on Jan. 14, the ERC directed all PDUs to file their actual weighted average tariff (AWAT) application by March 22.
The deadline was extended from 60 calendar days to 120 days from the effectivity of ERC Resolution No. 23, Series of 2025.
The ERC said that the extension was granted following the commission’s review of its regulatory targets for the year and in consideration of requests from the industry.
The extra time is also meant to ensure “orderly and efficient regulatory processing.”
Under the Electric Power Industry Reform Act, the ERC is responsible for establishing a method for setting transmission and distribution wheeling rates. The rates must be set in a way that allows the recovery of “just and reasonable costs and a reasonable return on rate base” to enable the entity to operate viably.
AWAT — the average distribution rates across customer classes — is calculated and approved during the rate reset process, a forward-looking exercise that requires the regulated entity to submit expenditure forecasts and proposed projects.
Last year, the ERC initiated a major regulatory overhaul to address a decade-long backlog in rate resets for PDUs under performance-based regulation by issuing the rationalized rules for setting distribution wheeling rates (RRDWR).
The RRDWR defines new entry groups for the PDUs and establishes the first regulatory period.
In the same resolution, the ERC also adjusted the deadlines for the filing of rate reset applications, by shortening the timeframe from 12 months to nine months before the start of their regulatory period.
“These amendments are intended to improve regulatory sequencing, facilitate the efficient conduct of hearings, and ensure the timely issuance of regulatory decisions, while upholding transparency and regulatory discipline,” the ERC said. — Sheldeen Joy Talavera