ERC offers flexible payments, halts disconnections after 'Kristine'

MANILA, Philippines — Households in areas declared under a state of calamity can expect an uninterrupted supply of electricity and flexible payment plans for bills until the end of 2024. 

The Energy Regulatory Commission (ERC) implemented four measures on Thursday, October 31, to help ease the burden on provinces affected by Severe Tropical Storm Kristine. 

One key measure is a moratorium on electricity disconnections, with the ERC directing distribution utilities, such as Meralco and regional electric cooperatives, to temporarily halt disconnections.

The ERC issues an advisory for DUs and energy stakeholders in response to the directive of President Ferdinand Marcos Jr. to study the implementation of a moratorium on electricity line disconnections and payment collections following the devastation caused by STS Kristine. pic.twitter.com/fArsfDLrh2

— Energy Regulatory Commission (@ERCgovPH) October 30, 2024

Under this suspension, households consuming up to 200 kWh of electricity per month should not face power cutoffs if they cannot pay bills on time. 

The moratorium applies from October to December 2024.

The second and third measures introduce flexible payment plans, requiring distribution utilities in affected areas to offer alternative payment options for households consuming less than and more than 200 kWh per month.

For households using up to 200 kWh, the ERC mandates that distribution utilities allow bills from October to December 2024 to be paid over six months after the statement of accounts has been issued.  

However, the same cannot be said for households with a higher electricity usage. It is up to distribution utilities and their consumers to discuss alternative payment options as needed. 

“Consumers are encouraged to contact their respective DIJS to inquire about the available alternative payment options or to request special terms to settle outstanding bills,” the ERC said in an advisory.

Distribution utilities will receive the same consideration for their payments to power suppliers, allowing them a staggered payment schedule aligned with the terms they extend to consumers.

Power suppliers and service providers include the Generators, Power Sector Assets and Liabilities Management Corp., National Power Corp., National Transmission Corp., National Grid Corp. of the Philippines, Independent Power Products, Independent Power Producer Administrators and the Market Operator.

“Thus, the concerned distribution utilities shall segregate payments from the affected consumers to determine the amounts to be paid on a similar staggered basis,” the ERC said.

Meralco's electricity rates for October are set at P11.4295 per kWh, which translates to roughly P2,286 per month for households consuming 200 kWh.

According to the National Disaster Risk Reduction and Management Council, around 361 cities and municipalities experienced power outages due to Kristine. As of October 31, 27% of the affected areas still do not have power restored.