Electricity distributors in calamity areas ordered to freeze power disconnections

Date: 2024-10-31

THE Energy Regulatory Commission (ERC) said on Thursday that it ordered all distribution utilities (DUs) in calamity areas to suspend electricity disconnections for unpaid bills between October and December.

The advisory follows a Presidential directive to study relief measures for power users in parts of the country hit by Severe Tropical Storm (STS) Kristine.

The ERC also directed DUs to provide flexible payment options “to help ease the financial burden on consumers as they work toward recovery from the effects of STS Kristine.”

The order applies to captive consumers with monthly consumption not exceeding 200 kilowatt-hours (kWh) during the October-December billing periods.

Affected captive customers must be allowed to pay their monthly electricity bills on a staggered basis for at least six months from the issuance of the statement of account of each bill.

“DUs may offer alternative payment terms that are mutually agreeable to both the DU and consumers whose consumption exceeds 200 kWh,” the ERC said.

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

Meanwhile, the regulator ordered generators, the Power Sector Assets and Liabilities Management Corp., the National Power Corp., the National Transmission Corp., and the National Grid Corp. of the Philippines to extend the same payment scheme to the affected DUs as they encounter payment delays from affected consumers.

This also applies to independent power producers, independent power producer administrators, and the market operator.

DUs need to segregate payments from affected consumers to determine the amounts to be paid on a similar staggered basis to the respective stakeholders.

“Availment of prompt payment discounts will still be in accordance with the parties’ approved supply contract,” the ERC said.

Manila Electric Co., the sole power distributor serving Metro Manila and nearby provinces, said it suspended disconnections in areas placed under a state of calamity and will offer flexible payment arrangements to affected customers.

“Meralco… is ready to comply with the ERC’s directive to provide relief to consumers heavily affected by Kristine,” Joe R. Zaldarriaga, Meralco’s vice-president and head of corporate communications, said via Viber.

In a separate statement, the National Electrification Administration (NEA) said at least 24 electric cooperatives (ECs) sustained significant damage due to Kristine, initially estimating the damage to power infrastructure at P70.25 million.

NEA Administrator Antonio Mariano C. Almeda said that damage assessment for the storm-hit ECs is still incomplete as reports are still coming in, especially in areas that remain flooded. — Sheldeen Joy Talavera

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