GOVERNMENT UNIVERSAL CHARGE INCREASES RATES BY Php0.0239/kWh
August 15, 2022
 

In accordance with the ERC Notice of Resolution dated August 4, 2022, on Case No. 20163-191RC filed by petitioner, National Power Corporation, the ERC authorized NPC to recover the shortfall on the UC-ME subsidy amounting to about P2.6 billion, equivalent to Php 0.0239/kWh.

On the other hand, PSALM is directed to disburse the amount to NPC and monitor and report the progress collection and disbursement of the true-up adjustment mechanism.

At our end, all distribution utilities, like ISECO, are directed by ERC to collect from all end users except for the sale for resale, the additional UC amounting to Php0.0239/kWh for the period of 12 months or until such time that the whole amount shall have been collected, whichever comes first.

There are three existing universal charges being collected from the consumers, such as:

1. UC ME - NPC SPUG P0.1783 ( including the new rate of P0.0239)
2. UC - NPC Stranded Debt P0.0428  
3. UC ME - RED CI P0.0017 (Renewable Energy Developer Cash Incentives)
Total
P0.2228  

These universal charges are being collected by all cooperatives nationwide, like ISECO, including private utilities from the consumers and are religiously remitted monthly to the Power Sector and Asset and Liabilities Management, or PSALM. UC-ME funds are used for the electrification of remote areas throughout the Philippines, while UC-STRANDED DEBT usage is to repay unpaid financial obligations of the NPC transferred to and assumed by PSALM. UC ME - RED CI are subsidies given to renewable energy developers to cover the power requirements needed to service missionary areas where they operates.

ISECO does not earn from such universal charge impositions but rather functions as the collector of the government only. The DSM of ISECO has remained unchanged for 11 years now, having implemented the RSEC-WR in in February 2010.

The increase will take effect in the August 2022 billing.