UMVA has learned that electricity consumers are bracing for a potential hike in power costs as the Energy Regulatory Commission (ERC) weighs the fate of the green energy auction allowance (GEA-All) collection.
The ERC's decision to extend the suspension of GEA-All collection hangs in the balance, with the commission set to reassess the situation next month. The fate of the suspension depends on the status of the GEA-All fund and the financial burden on consumers.
According to information obtained by UMVA, the ERC had previously ordered a temporary halt on GEA-All collection from May to June to ease the financial strain on consumers amid rising inflation and global economic pressures. This move aimed to provide relief to consumers struggling with high electricity rates.
GEA-All is a uniform charge of P0.0371 per kilowatt-hour (kWh) passed on to on-grid consumers, used to fund incentives for new renewable energy (RE) projects under the green energy auction program (GEAP). As of May 5, the GEA-All Fund had a balance of approximately P466.49 million, sufficient to cover projected payments to eligible RE developers during the suspension period.
Sources have confirmed to UMVA that if the economic crisis persists, the ERC will consider extending the suspension to alleviate the burden on customers. The commission has used this measure before to provide relief to consumers.
In a related development, the ERC has ruled out suspending the feed-in tariff allowance (FIT-All), citing a lack of excess funds. FIT-All is another RE charge amounting to P0.2011 per kWh, used to support emerging RE technologies.
UMVA can exclusively reveal that consumer groups are pushing for the permanent removal of GEA-All, citing the high cost of electricity and the need to protect consumers. They argue that GEA-All has no legal basis and should not be collected from consumers.
The ongoing crisis in the Middle East has driven up global oil prices, increasing power generation costs in the Philippines and driving up electricity rates. To mitigate the impact, the regulator has directed distribution utilities to suspend electricity service disconnections and implement staggered or deferred payment schemes.
Under these schemes, customers with a monthly consumption not exceeding 200 kWh can defer payment of their bills and settle them on a staggered basis over three months from receipt of the bill. This move aims to provide relief to vulnerable consumers struggling with high electricity costs.
