ERC orders distribution utilities to submit system loss data online

MANILA, Philippines — The Energy Regulatory Commission (ERC) has required distribution utilities (DUs) to submit system loss and reliability data online to ensure the quality, reliability, security and affordability of electric power supply.

The power regulator has directed DUs to submit within six months after the last workshop conducted by the Distribution Management Committee (DMC) the distribution system loss segregation and interruption reports electronically.

“The Distribution Management Committee is hereby announcing the commencement of submission of the system loss segregation and interruption reports by July 2018,” it said.

The ERC has previously issued a resolution that directs the DMC to conduct a workshop regarding the guidelines and procedures for web-based report submission.

The DMC was established by the power regulator to monitor evaluate, and make recommendations on distribution operation.

It is also tasked to review and recommend standards, procedures, and requirements for distribution system connection, operation, maintenance, and development.

The DMC also prepares regular and special reports for submission to the ERC, or as required by the appropriate government agency, or when requested by a distribution system user.

Earlier, the ERC said it is implementing a lower system loss cap by the fourth quarter this year to reduce the pass-on burden to consumers.

System loss refers to unbilled power caused by pilferage and physical loss of energy when electricity passes through distribution lines, which can be passed on to consumers as stated under Republic Act 7832, or the Anti-Electricity and Electric Transmission Lines/Materials Pilferage Act of 1994.

The proposal for lower system loss cap was drafted by a third party consultant, which also studied how the bill item can be segregated into technical and non-technical items.

Technical system loss is an inherent loss in the physical delivery of electricity while non-technical system loss is a result of pilferage, human error like tampering of meters and erroneous meter reading.

Under its proposal, the consultant segregated the technical from the non-technical system loss. The proposed cap for non-technical system loss of electric cooperatives (EC) is at 4.5 percent and 1.25 percent for privately-owned DUs.

Currently, the ERC has set the system loss cap at 8.5 percent for privately-owned DUs and 13 percent for EC, which can be passed on to consumers through a line item in their monthly electricity bills.

A law is also being passed to reduce the amount of system loss charges electricity companies are allowed to pass on to consumers in their monthly bills.

Sen. Sherwin Gatchalian has filed Senate Bill 1623, otherwise known the Recoverable System Loss Act, which proposes to decrease the current system loss caps from 8.5 percent to five percent for private DUs and 13 percent to 10 percent for ECs.

This will result in net overall savings on retail electricity to as high as P0.66 per kilowatt-hour (kwh) in some areas.