ERC chief says system loss cap being monitored; More Power claims compliance

MANILA, Philippines — The Energy Regulatory Commission (ERC) assures power consumers in Iloilo that More Electric and Power Corp. (More Power) is adhering to the maximum allowed system loss for a distribution utility.

ERC Chair Agnes Devanadera made the clarification in a statement on Tuesday after More Power was accused of having a 7.1 percent system loss although the regulatory agency had set a maximum of only 6.5 percent.

System loss refers to the discrepancy between the electricity delivered by utility companies to the electricity actually received by customers.

It’s incurred either by natural means or by unforced circumstances, such as electric pilferage.

Devanadera assured consumers that the ERC was monitoring electric companies from time-to-time to ensure that distribution utilities were adhering to standards.

“The lowering of the system loss caps is a move to bring down the power rates and help electricity consumers mitigate the impact of rising costs of commodities and services,” Devanadera said.

“This will encourage distribution utilities (DUs) to improve their distribution system and facilities so that they adhere to the newly-prescribed system loss cap,” she added.

More Power now controls Iloilo’s grid after earning a congressional franchise to operate in that province.

However, More Power’s competitor, Panay Electric Co. (PECO), asked a court to stop More Power from operating as it supposedly had no background in the industry and was merely using its distribution assets.

But last July, PECO lost its bid to recover the assets as an Iloilo court junked its motion, with the court reasoning that PECO no longer had the congressional franchise.

[atm]