ERC orders power firms in Kristine-hit areas to suspend disconnections, stagger bills payment

The Energy Regulatory Commission (ERC) on Thursday ordered electric industry stakeholders in areas under state of calamity following the onslaught of Severe Tropical Storm Kristine to suspend disconnections and implement flexible bills payment schemes until December to ease the burden of affected consumers.

In an advisory to its regulated entities, the ERC said the order was in compliance with the directive of President Ferdinand "Bongbong" Marcos Jr. to study the implementation of a moratorium on electricity line disconnections and payment collections after the widespread devastation caused by Kristine. 

The power industry regulator tasked all distribution utilities (DUs) in areas placed under a state of calamity to “suspend electricity line disconnections of residential and non-residential consumers in [their] captive market with a monthly electricity consumption not exceeding 200 kilowatt-hours (kWh), for non-payment of electricity bills for the billing period of October 2024 until December 2024.”

Moreover, the ERC said that DUs in the affected areas are directed “to provide flexible payment options to help ease the financial burden on consumers as they work toward recovery from the effects of STS Kristine.”

The regulatory body said that DUs shall implement a payment scheme wherein captive consumers, whose monthly consumption do not exceed 200 kWh during the billing periods of October to December 2024, “shall be allowed to pay these monthly bills on a staggered basis for a period of at least six months from issuance of the Statement of Account for each bill.”

The ERC said that DUs may offer alternative payment terms that are mutually agreeable to both the DU and the consumers whose consumption exceeds 200 kWh. 

“Consumers are encouraged to contact their respective DUs to inquire about the available alternative payment options or to request special terms to settle outstanding bills,” it said.

There are a total of 158 areas declared under state of calamity in the aftermath of Kristine, with the Bicol Region having most cities and municipalities placed under state of calamity at 78.

Calabarzon came in second with 63 cities and municipalities under state of calamity.

In Eastern Visayas, 13 areas are placed under state of calamity, while one area each in Ilocos Region, SOCCSKCARGEN, Cordillera Administrative Region, and National Capital Region was put under state of calamity.

The ERC said power generators, Power Sector Assets and Liabilities Management Corporation (PSALM), the National Power Corporation (NPC), the National Transmission Corporation (TransCo), the National Grid Corporation of the Philippines (NGCP), Independent Power Producers (IPPs), Independent Power Producer Administrators (IPPAs) and the Market Operator (MO) “shall extend the same payment scheme to the affected DUs only insofar as the latter’s collections from the affected consumers.”

“Thus, the concerned DUs shall segregate payments from the affected consumers to determine the amounts to be paid on a similar staggered basis to their respective Generators, PSALM, NPC, TRANSCO, NGCP, IPPs, IPPAs and MO. Availment of Prompt Payment Discount (PPD) will still be in accordance with the parties’ approved supply contract,” it said. —KBK, GMA Integrated News