As Filipino consumers are continually stricken with the sting of outdated and expensive electricity rates, a lawmaker is pushing for a comprehensive investigation on the cause of delays on the rate reset or the warranted tariff adjustments of regulated entities as anchored on performance-based regulation (PBR) – primarily for the private distribution utilities (DUs) and electric cooperatives (ECs) as well as system operator National Grid Corporation of the Philippines.

During plenary deliberation on the energy agencies’ budget, Congressman John Clement “JC” Abalos of 4Ps Partylist, proposed “an independent investigation on the course of the delays in the conduct of the regulatory rate reset processes for both the distribution transmission sectors.”

He emphasized that the probe must not only cover the current leadership of the Energy Regulatory Commission (ERC), but even in the past administration given that the last reset process had been roughly a decade ago for various DUs and also that of NGCP.

Apart from fleshing out the factors which had thrown consumers into paying obsolete electricity rates, he similarly cited the need “to review the current legal processes that are contributing to the delays.”

The end-goal of the targeted investigations, he said, is “to streamline procedures and reduce bottlenecks.”

Abalos indicated that based on the research done by his office, one of the key factors which triggered tangled web of developments leading to the delays in rate adjustments had been the procurement of consultants that would supposedly aid ERC on its rate reset function.

He primarily conveyed that in 2015, P15 million had been allocated to the ERC for consultancy services, “but no project pushed through the procurement stage.”

And while that fund allocation had been carried over in the succeeding year, significant portion of budget had remained unutilized for the targeted consultancy services.

Abalos further conveyed that “based on our records, NGCP’s last reset occurred back in 2010 covering the third regulatory period from 2011 to 2015. We are now in 2024… yet the ERC is only just completing the rate reset for the fourth regulatory period, which should have covered the period from 2016 to 2022,” the solon stressed.

He qualified that “this delay of over seven years raises several questions that have yet to be addressed given the significant implications for our power consumers.”

In the case of Manila Electric Company (Meralco) and other private DUs, he stressed that these power utilities “should have undergone rate resets every four years. However, the last reset for Group A, which includes Meralco ended in 2015.”

Abalos lamented that “instead of a full-blown rate reset as required by law and its own rules, the ERC implemented what it called a confirmation and true-up (adjustment) process.”

The lawmaker thus noted that “the lack of timely update has led to a reliance on outdated rates self-declarations of the regulated entities, all adversely affecting cost recovery and fairness in pricing.”

He added that the setback in the rate reset of regulated entities “creates a perfect storm of uncertainty for consumers and stakeholders alike.”