THE Energy Regulatory Commission (ERC) said it has issued show-cause orders to 37 generation firms for failing to disclose their fuel costs, which the regulator uses to validate the reasonableness of their generation charges.
In a statement on Wednesday, the ERC said the power firms were singled out for allegedly “failing to act on ERC’s letter-orders issued between December 2022 and March 2024.”
The orders required the submission of complete sets of fuel cost data and documents covering the period from January to October 2022 “to ensure that only reasonable and justifiable fuel expenses are charged to consumers in the exercise of its regulatory mandate.”
Among the firms issued show-cause orders were subsidiaries of San Miguel Corp. (SMC), Aboitiz Power Corp. (AboitizPower), and DMCI Power Corp.
SMC units Masinloc Power Partners Co. Ltd., San Miguel Energy Corp., SMC Consolidated Power Corp., and San Miguel Consolidated Power Corp. were served show-cause orders.
The ERC also sought explanations from AboitizPower units Therma Luzon, Inc., Toledo Power Corp., GNPower Dinginin, Ltd. Co., and GNPower Mariveles Energy Center, Ltd. Co.
The DMCI Power subsidiary DMCI Masbate Power Corp. (DMPC) was also issued the order.
SMC and AboitizPower have yet to release statements on the matter.
DMCI Power and DMPC said they have yet to receive the show-cause orders but are “in the process of verifying from their records the alleged non-compliance with the ERC directive.”
“We remain fully committed to regulatory compliance and transparency in our operations and will cooperate with the ERC to address the matter accordingly,” they said.
The ERC directed the generation firms to submit the required documents and a verified explanation within 15 days from receipt of the decision.
Power generators were asked to explain why no administrative penalty should be imposed on them. The ERC is authorized to seek such disclosures by the Electric Power Industry Reform Act.
“The ERC continues to conduct rigorous fuel audits to make sure that only fair and reasonable costs are being charged by our regulated entities. We owe it to consumers to protect them from unnecessary charges and ensure that they’re not paying more than they should for electricity,” ERC Chairperson and Chief Executive Officer Monalisa C. Dimalanta said.
“We likewise remind gencos (generation companies) to fully cooperate and comply with these requirements, so we can uphold transparency and deliver power at the least cost possible,” she added. — Sheldeen Joy Talavera