Cusi nixes pass-on of ILP charges on electricity to consumers

Published June 4, 2018, 10:00 PM

by Mario Casayuran and Vanne Elaine Terrazola

By Myrna M. Velasco

When “yellow alert condition” strains power supply in the grid, the interruptible load program (ILP) is activated but there are corresponding “differential charges” being passed on to consumers.

Such a policy of passing on the cost difference is being objected to by Department of Energy (DOE) Secretary Alfonso G. Cusi; hence, he is seeking modifications to the ILP rules prescribed for the sector.

“When there is tightness of supply, the interruptible loads are being called upon to use their own gensets (generating sets). But they pass on the cost difference of using their own generating facilities, I am not amenable to that,” the energy chief said. He added “it shouldn’t be a case that it’s the Filipino consumers paying for the difference of the cost, so I want that (policy) to change.”

The cost difference in mobilizing the ILPs would often be integrated into the generation charge component and correspondingly passed on in the electric bills.

Cusi emphasized these entities with gensets are warranted to use their facilities when supply drawn from the grid runs tight, “but they should not be passing on costs for utilizing their facilities.”

He explained that power-sensitive end-users, such as industries and commercial establishments often procure their own gensets purposively to protect themselves when there are technical upsets in the grid – which in turn would lead them to not getting enough power supply from the system.