Electricity consumers are bracing for a noticeable increase in their November bills due to the directive of the Energy Regulatory Commission (ERC) on the reinstatement of the Universal Charge – Environmental Charge (UC-EC) at a rate of PhP0.0025/kWh. This fee, which had been suspended since May 2020, will now be collected again by distribution utilities and remitted to the Power Sector Assets and Liabilities Management Corporation (PSALM). 

This reinstatement ensures continued funding for the National Power Corporation’s (NPC) watershed management and rehabilitation projects.  The ERC also approved an increase in the Feed-in Tariff Allowance (FIT-All) charge from P0.1189/kWh in October to P0.2073/kWh this November, which supports renewable energy projects, further contributing to the increase on power costs this month. According to the Commission, the adjustment is necessary to settle a PhP19.06-billion differential and establish a working capital buffer to prevent future delays and accrued interest, which would only lead to even higher charges later on.

These regulatory adjustments come at a time when the power generation sector is experiencing its own significant cost drivers, evidenced by recent spikes in market prices and transmission fees. Moreover, the National Grid Corporation of the Philippines (NGCP) announced an increase in transmission rates, largely due to higher ancillary service charges needed to maintain grid stability. While these charges may seem minor, this creates a substantial burden for households and businesses, which is urging the government to review the various components of the electric bill to mitigate the mounting financial strain on the public.

The combined effect of these ERC-mandated increases will push the total electricity rate up for the billing period, stressing the need for consumers to practice energy efficiency to mitigate the impact on household budgets.### #PowerNews