The Energy Regulatory Commission (ERC) has ordered the Philippine Electricity Market Corp. (PEMC) to refund its overcollection in the Market Transaction Fees (MTF) for the years 2019 and 2020.
In a Business Mirror report, ERC has directed the PEMC, the governing body of the Wholesale Electricity Spot Market (WESM), to submit an action plan for the implementation of the refund scheme and the corresponding adjustment to the MTF within 15 days upon receipt of the resolution dated June 16.
ERC, however, did not indicate how much PEMC should return. But, the commission issued a cap cost of the MTF at Php 448,966,163.25 each for both 2019 and 2020.
MTF serves as the administering and operating cost of WESM. It is charged against all market participants like power generation companies, the Power Sector Assets and Liabilities Management Corp. (PSALM), distribution utilities, and bulk end-users.
The refund, ERC noted, must be apportioned among the participants in Luzon and Visayas.
In a Philippine Star report, ERC commissioner and spokesperson Floresinda Digal said that the PEMC would also need to submit its actual collection in the indicated years to determine the refund amount.
In its application, PEMC petitioned to collect Php 813 million with a fixed market fee rate of Php 0.01 per kilowatt-hour (kWh) in 2019, and Php 1.03 billion with a fixed market fee rate of Php 0.01 per kWh in 2020.