RAZON-LED MORE Electric and Power Corp. (MORE Power) is seeking to recover P115.41 million in under recoveries — financial shortfalls resulting from the difference between actual costs and recovered amounts — from 2021 to 2023, proposing to charge a portion of this amount to consumers over a 36-month period.
The company has submitted an application to the Energy Regulatory Commission seeking confirmation and approval of its calculations, as well as permission to either refund over recoveries or collect under recoveries from its customers.
“MORE Power made calculations of the over recoveries charged or under-recoveries incurred as against its customers, in the implementation of certain automatic cost adjustments and true-up mechanisms, covering the period 01 January 2021 to 31 Dec. 2023,” the company said.
Based on its calculations, the under recovery for generation, transmission, senior citizen charge and subsidy, and real property tax amounted to approximately P152.23 million. However, after accounting for over recoveries from system loss, lifeline charge and subsidy, and franchise tax, which total P36.82 million, the net under recovery was reduced to P115.41 million.
Under the proposed scheme, recoveries or refunds for generation, transmission, system loss, real property tax, and franchise tax charges will be distributed over a 36-month period.
Meanwhile, recoveries or refunds for the senior citizen charge and subsidy rate will be distributed over three months, and those for the lifeline charge and subsidy rate will be spread over 12 months.
Republic Act No. 9136, otherwise known as the Electric Power Industry Reform Act of 2001, allows distribution utilities to recover just and reasonable costs to enable them to operate viably.
Last week, the power distributor said it had energized its rehabilitated Molo Substation in Iloilo City, which has an estimated cost of P60.6 million.
The upgrade involved replacing outdated and unreliable equipment, including the control system, switchyard, and other important devices.
The Molo Substation’s upgrade also includes a reconfigured in-out system, which reduces the risk of outages, especially during peak demand, the company said. — Sheldeen Joy Talavera
