The Energy Regulatory Commission (ERC) has barred retail electricity suppliers, distribution utilities (DUs), and the market operator from issuing notices of disconnections and from disconnecting the electricity supply of their contestable customers.
In a statement, the ERC said it has issued 13 cease and desist orders (CDOs) to Retail Electricity Suppliers (RES) and the Independent Electricity Market Operator of the Philippines (IEMOP) following the series of hearing on petitions for dispute resolution filed by contestable consumers.
The cases were filed by consumers due to differing interpretations by the parties on the propriety of the imposition by RES of Fuel Cost Recovery Adjustments (FCRA) or Incremental Fuel Cost Increase (IFCI), the ERC said.
Contestable consumers, according to the ERC, said their contracts prescribed fixed rates. However, the adjustments are now being “claimed unilaterally by their suppliers in violation of their supply contracts.”
RES Respondents, the ERC said, raised jurisdictional issues against ERC. DUs and the IEMOP were “impleaded since the issuance of notices and the disconnections of service are performed by such parties.”
“ERC directed the parties to maintain the status quo while the Motions to Dismiss filed by the RES are being evaluated by the Commission. During this period, the parties are required to observe the terms and conditions of their supply agreements,” the ERC said.
With the CDOs, consumers are assured of continuous electricity supply pending the final resolution by the ERC.
Under the Republic Act 9136, or the Electric Power Industry Reform Act of 2001, ERC is authorized to issue cease and desist orders after due notice and hearing.