House version on systems loss bill shelved in view of ERC resolution

By Minde Nyl R. Dela Cruz, Reporter

THE House committee on energy “might take a step back” from passing a draft bill on recoverable systems loss after noting that the Energy Regulatory Commission (ERC) is already implementing a resolution with similar provisions.
“I think the committee on energy in the lower House might take a step back and look at the effect first of the resolution of the ERC, Resolution No. 10, on how it will affect [the electricity rates],” said Marinduqe Rep. Lord Allan Jay Q. Velasco, chairman of the House energy committee.
The draft substitute to House bills 942, 2297, and 6341, which all seek the systematic lowering of systems loss cap, was deferred to the technical working group chaired by 1-CARE party-list Rep. Carlos Roman Uybarreta after PBA party-list Rep. Mark Aeron H. Sambar noted similarities with the ERC resolution which was implemented on May 8.
The unnumbered substitute bill gradually reduces the systems loss cap for large private distribution utilities (PDUs) to 7-6.5% in 2019 and to 6-5.5% in 2022 while the loss cap for electric cooperatives (ECs) will be lowered to 12% in 2019 and to 10.25% or 8.5% in 2023.
Under the ERC resolution, systems loss cap for PDUs will be decreased to 6.5% in 2018 and to 5.5% in 2021 and ECs to 12% in 2018 and to 10.25% or 8.25% in 2022 onwards. The new rates will apply in the next billing cycle (May 8 to June 8) this year.
Mr. Velasco said the long congressional break starting on June 2 will give the committee more time to study the measure. However, if the bill will “just [be] a duplication of the resolution, there’s really no need to pass the legislation,” he said.
AKO BIKOL party-list Rep. Rodel M. Batocabe suggested during the hearing that the energy committee provide instead a “policy to promote the efficiency of distribution utilities and fixing the rate of systems losses will just be incidental.”
Should there be significant easing of electricity bills as an effect of the ERC resolution, the committee may “just consider the bill moot and academic and then I’ll just ask Hon. Batocabe to file another bill specifically for that efficiency he [mentioned],” Mr. Velasco said of the priority measure as cited in the Common Legislative Agenda.
The Senate in February passed on third reading its version of the bill. Senate bill 1623, sponsored by Senator Sherwin T. Gatchalian, provided for reduction of systems loss cap of 5% from 8.5% for PDUs while systems loss cap for ECs was lowered to 10% from 13%.