ILOILO CITY — The Energy Regulatory Commission (ERC) has stepped in to stop burdening consumers in Panay and Negros Islands after a government-related project damaged the submarine cable of the National Grid Corporation of the Philippines (NGCP) which transmits power all over Visayas.
"The congestion and other charges that are attributable to the damage of the Cebu-Negros Submarine Cable, which was not caused by the consumers, should not be charged to them", said Agnes Devanadera, ERC chairperson and chief executive officer.
In a September 20 letter, ERC ordered Wholesale Electricity Spot Market (WESM) to “stop the collection of congestion and other applicable charges, including but not limited to line rentals.”
Power distributors including MORE Electric and Power Corp. (MORE Power) in Iloilo City earlier pleaded with ERC not to pass on the financial penalties to consumers.
MORE Power President Roel Castro earlier said that a contractor of the Department of Public Works and Highways (DPHW) damaged NGCP’s submarine cable during river dredging in Negros Oriental province. The particular submarine cable connects Negros and Cebu islands and crucial line for transmitting power from generators to power distributors.
The June 15 incident led to power distributors such as MORE Power paying higher line rental fees and other congestion charges, which were passed on to consumers.
But that was also stopped by ERC and consumers will be refunded by WESM for the billing period of June to August 2021.