Consumers may have to brace themselves for another electricity price increase as the Energy Regulatory Commission has committed to act shortly on the petition of state-run Power Sector Assets and Liabilities Management Corp. (PSALM) to recover P139 billion worth of debts.
ERC executive director Francis Saturnino Juan told reporters that the commission could issue a provisional authority after 30 days from the filing of the petition, but not beyond 75 days. PSALM’s application to recover stranded debts and contract costs through the universal charge was filed last June 28, which means that a provisional authority may be handed down as early as September.
“There’s a prayer for provisional authority, so we will be evaluating the application for the issuance of provisional relief and see if there is merit to what is being asked for,” Juan explained.
Juan added that the ERC was mandated by law to act on the filing of PSALM, but assured the public that the commission would treat it “like any other case.” If there is merit, the commission may grant the PSALM application but the rates that may be allowed for recovery will depend on the supporting documents to be presented.
Juan also disclosed that the ERC was set to conduct public consultations for PSALM’s application. However, the lack of such consultations would not hinder ERC from rendering a temporary provisional authority. No date has been set for the release of a decision.