ERC orders energy companies in areas affected by Kristine to suspend disconnections and stagger bill payments

The Energy Regulatory Commission (ERC) on Thursday ordered electricity sector stakeholders in areas under a state of disaster following the onslaught of severe Tropical Storm Kristine to suspend disconnections and implement flexible bill payment plans until December to ease the burden of affected consumers.

In an advisory to its regulated entities, the ERC said the order was in line with President Ferdinand “Bongbong” Marcos Jr.’s directive. study the implementation of a moratorium about shutting down power lines and collecting payments after the widespread destruction caused by Kristine.

The power sector regulator has ordered all distribution companies (DUs) in areas in a state of disaster to “suspend the disconnection of electricity lines of residential and non-residential consumers in (their) internal market with a monthly electricity consumption not exceeding 200 kilowatt hours (kWh), due to non-payment of electricity bills for the billing period from October 2024 to December 2024.”

In addition, the ERC said DUs in the affected areas are directed to “provide flexible payment options to ease the financial burden on consumers as they work to recover from the impacts of STS Kristine.”

The regulatory body said DUs will implement a payment scheme whereby consumers, whose monthly consumption does not exceed 200 kWh during the billing periods from October to December 2024, “may pay these monthly bills in installments for a period of at least six months after the issuance of the account statement for each invoice.”

The ERC said DUs may offer alternative payment terms that are mutually acceptable to both the DU and consumers with consumption above 200 kWh.

“Consumers are encouraged to contact their respective DUs to inquire about available alternative payment options or request special terms to pay outstanding bills,” the report said.

A total of 158 areas have been declared under a state of disaster in the wake of Kristine, with the Bicol region having the most cities and towns out of 78 placed under a state of disaster.

Calabarzon came in second with 63 cities and municipalities in need.

In Eastern Visayas, 13 areas have been placed under a state of disaster, while one area in the Ilocos Region, SOCCSKCARGEN, the Cordillera Administrative Region and the National Capital Region have been placed under a state of disaster.

The ERC said that power producers, Power Sector Assets and Liabilities Management Corporation (PSALM), the National Power Corporation (NPC), the National Transmission Corporation (TransCo), the National Grid Corporation of the Philippines (NGCP), Independent Power Producers (IPPs) , Independent Power Producer Administrators (IPPAs) and the Market Operator (MO) “shall extend the same payment scheme to the affected DUs only to the extent that the latter concerns collections from the affected consumers.”

“Thus, the concerned DUs will segregate the payments of the affected consumers to determine the amounts payable on a comparable staggered basis to their respective Generators, PSALM, NPC, TRANSCO, NGCP, IPPs, IPPAs and MO. The use of Prompt Payment Discount (PPD) will continue to be in accordance with the parties’ approved supply contract,” the report said. —KBK, GMA integrated news