ERC should audit ‘pass-through’ costs – Gatchalian

FILE PHOTO Energy Regulatory Commission (ERC) /INQUIRER.net MANILA, Philippines — Senate President Sherwin Gatchalian sought more powers for the Energy Regulatory Commission (ERC) to audit not just distribution fees, but also the pass-through costs of generating electricity. Pass-through costs are fees added directly to the bill of energy consumers based on a utility company’s expenses from producing said utility, such as production and delivery rates from power plants and distributors. “Pass-through charges need to be audited. We, consumers, need to be assured that what is being passed on to us is not excessive. It’s common sense, if you’re a businessman, of course you want to pass on the highest amount to the consumer so that you can earn a high profit… but the regulator is there to ensure that you earn a decent amount but not too much,” Gatchalian said during the Senate energy panel hearing. Article continues after this advertisement The hearing aimed to discuss ways to strengthen the ERC amid rising fuel prices. READ: Groups warn of legal action vs DOE, ERC over rising power rates He was talking to ERC Chairperson Saturnino Juan, who admitted that the agency has “not thoroughly” checked the right prices for fuel pass-through. “There is that need for us to come up with audit steps to determine really what should be the appropriate pass-through,” Juan also told the panel. Gatchalian criticized the lack of the ERC’s powers, pointing out that it makes the government “blind” to the pass-through charges that affect energy consumers. Article continues after this advertisement “I believe that the price that is passed on to us because it is not checked, we do not know what is really being passed on to us… The ERC should not only look at the distribution charges, but they should also look at the pass-through. Because we are blind. The government is blind when it comes to pass-through,” the senator pressed. Energy panel chairperson Sen. Erwin Tulfo also chimed in, grilling Juan on the lack of checks and balances to the pass-through charges. Article continues after this advertisement “You could have prevented that– this abuse of the electricity price… If you only did your job even though you had no power, you could have done something. You could have told the public,” Tulfo stressed. He then asked Juan: “Do you agree with me that it is abuse?” Juan replied that he “had no basis” to say so, prompting a sharp reaction from Tulfo, who said: “You have no basis, but the people know that they were abused and shamelessly ignored.” /das Your subscription could not be saved. Please try again. Your subscription has been successful.