NATIONAL ELECTRIFICATION ADMINISTRATION
BACONC PILIPIHAS
REGULATORY ADVISORY NO. 2024-005
TO
ALL ELECTRIC COOPERATIVES (ECs)
SUBJECT
ERC ORDER REGARDING DECLARATION OF MARKET
SUSPENSION DURING RED ALERTS DURING THE SUMMER
MONTHS OF 2024 PER ERC CASE NO. 2024-017 MC
DATE
JUL O3 2024
To diminish the impact of the high generation rates passed on to electricity consumers
of distribution utilities (DUs) with high WESM exposure during the recent heat waves in
Luzon , Visayas and Mindanao including the series of red and yellow alerts in the Luzon
and Visayas Grids, the Energy Regulatory Commission (ERC) approved a staggered
payment scheme for the Wholesale Electricity Spot Market (WESM) purchases of DUs
for four (4) months starting June 2024.
ERC Case No. 2024-017 MC promulgated on 13 June 2024 and entitled, "In the
Matter of the Declaration of Market Suspension During Red Alerts During the
Summer Months of 2024 directs the market operator to divide its billing to all DUs in
four (4) equal amortizations while DUs ARE MANDATED TO COLLECT FROM
CONSUMERS GENERATION CHARGES ON A STAGGERED BASIS FROM JUNE
2024 TO SEPTEMBER 2024.
11
Provisions on the staggered payment scheme as stated in the ERC Order, to wit:
"WHEREFORE, premises considered, the Commission hereby DIRECTS
as follows:
(1)
Independent Electricity Market Operator of the Philippines (IEMOP)
is hereby directed to:
(a) Divide the bill of all distribution utilities with energy purchased
from the Wholesale Electricity Spot Market (WESM) for the
period of 26 April to 25 May 2024 in four (4) equal amortizations
to be paid in the following manner:
i. Covers the May 2024 WESM Bill;
ii. Bill is to be divided equally into a four-month amortization
period from June to September 2024, as shown in the followi@ 0
table:
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NEA Bu ilding, 57 NIA Rnad. Saranga y P1nyahan ,
Governmant Center Oilim~n. Quezon City 1100
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ID
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41
WESM Billing
Month
Period Covered
Original Due
Date
Amortization Due
Dates
May 2024
26 April 2024 25May 2024
25June 2024
25June 2024
25Ju/y 2024
25 August 2024
25 September 2024
(b) Not impose any default interest on the amortization payments,
provided that these are paid on or before the amortizations due
dates set out above.
(2) ALL DISTRIBUTION UTILITIES (private distribution utilities and
electric cooperatives) are hereby directed to stagger the collection
from their consumers of the component of their generation charges
arising from WESM purchases for the May 2024 WESM Billing Month
in four equal monthly installments, from June 2024 to September
2024."
All ECs are hereby directed to adhere to the guidelines of the ERC Order and ensure its
full implementation for the benefit of the member-consumer-owners. Failure to comply
with the ERC directives may result in regulatory actions as deemed appropriate by the
Commission and the NEA.
For your strict compliance.
NATIONAL ELECTRIFICATION
ADMINISTRATION
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