The Energy Regulatory Commission (ERC) has issued cease and desist orders (CDO) on retail electricity suppliers (RES). distribution utilities (DUs), and the Independent Electricity Market Operator of the Philippines (IEMOP) so they could be prevented from issuing disconnection notices to their contestable customers.
13 orders were filed by the ERC after some consumers filed cases due to differing interpretations on the propriety of the imposition by RES of the fuel cost recovery adjustments (FCRA) or incremental fuel cost increase (IFCI).
“According to the contestable customers, their contracts prescribed fixed rates but the adjustments are now being claimed unilaterally by their suppliers in violation of their supply contracts,” ERC said in a statement.
ERC has ordered the involved parties to “maintain status quo” while the motions to dismiss filed by RES are being evaluated.
“During this period, the parties are required to observe the terms and conditions of their supply agreements,” ERC said.
The Commission assured that consumers will have continuous power supply pending the final resolution.