THE Energy Regulatory Commission (ERC) has ordered the refund of some market transaction fees which were over-collected from participants of the Wholesale Electricity Spot Market (WESM) in Luzon and Visayas in 2015.
In a recently published 78-paged resolution, the regulator approved with modification the level of market transaction fee for 2015 stated in the June 2014 application made by state-led Philippine Electricity Market Corp. (PEMC), the governing body of the WESM.
ERC Chairperson and Chief Executive Officer Agnes VST Devanadera said in a statement that the agency cut its proposed P896.41 million by almost half to P477.47 million as some portions are deemed “unnecessary and unreasonable,” which the PEMC also failed to back with documents to justify their collection.
The removed components include some provisions on capital expenditure, participants’ development cost, research and development and life insurance of personnel.
The commission also based its decision on the PEMC’s actual expenses after finding it has under-utilized its budget for some items, as well as the consideration of its function as a government-owned and controlled corporation (GOCC) vested with public interest.
“We are directing PEMC to refund its over collection in the market transaction fee for the 2015 calendar year to be apportioned among all the Luzon and Visayas participants,” the official said.
The PEMC was ordered to implement the refund in the next 12 billing months from the receipt of the decision. The transaction fee adjustment must be reflected in a separate line item in the WESM monthly billing statements.
Moreover, the ERC is expecting a plan of action from the WESM manager for the enforcement of the refund scheme. — Adam J. Ang