DUs, ECs to decide on extension of disconnection policy

MANILA, Philippines — The Energy Regulatory Commission (ERC) is leaving it up to distribution utilities (DUs) and electric cooperatives (ECs) if they will extend their no disconnection policy.

Manila Electric Co. (Meralco), the country’s largest power distributor, will review if it can still extend payment terms to customers.

In a radio interview, ERC chairperson Agnes Devanadera said the commission would not come out with a directive not to disconnect customers with unpaid bills.

However, DUs and ECs can decide if they are still capable of extending their no disconnection policy.

“The economy is starting to open up, with more people returning to work. This is a new situation for us. But we are leaving it up to DUs in deciding to extend their no disconnection policy because each DU has a different situation,” she said.

Devanadera said not all DUs could continue to sustain their business of supplying electricity to customers if they will continue to extend the grace period for unpaid bills.

Last week, Meralco announced it would start sending disconnection notices to customers consuming 201 kilowatt-hour (kWh) and above with unpaid accounts.

On the other hand, those consuming 200 kWh and below have until the end of the month to enjoy the no disconnection policy.

Devanadera said Meralco’s decision to extend the grace period until end-January was voluntary, and not an order of the ERC, to help consumers amid the coronavirus pandemic.

Based on ERC’s monitoring, the ERC chief said even ECs are doing what they can to extend the grace period to customers to settle arrears.

She noted that not all utilities have the financial muscle to lengthen the grace period.

“What we’re seeing is that even ECs are calculating on how long they can extend the no disconnection policy. But we also don’t want them to fail in their service of supplying electricity because they no longer have funds,” Devanadera said.

Meanwhile, Meralco said it would study if it can still extend the grace period to customers.

“We will study the suggestion to extend payment terms for our customers,” Meralco head of utility economics Lawrence Fernandez said in a recent Senate hearing.

This comes after Sen. Risa Hontiveros asked Meralco if it could extend the installment-based payment scheme for consumers to help them cope amid the pandemic.

Fernandez said Meralco had already extended the grace period until end-January, which was already beyond the October 2020 advisory of the ERC to extend the disconnection moratorium for consumers using 200 kwh and below.

During the no disconnection policy, Meralco shouldered all the pass-through charges—generation, transmission charges—for customers, he said.