ERC to resolve P34.5B fuel cost recovery petitions

Power generation companies are expected to get relief as the Energy Regulatory Commission (ERC) is moving to resolve about P34.5 billion in fuel cost recovery under their power supply agreements.

In a briefing on Friday, data presented by the ERC showed that Meralco and Sual Power Inc. (formerly known as San Miguel Energy Corp.) were seeking roughly P13.3 billion in cost recovery, invoking the change in circumstances (CIC) provision.

The regulator is evaluating the claim following recent court decisions directing action on long-pending price adjustment requests.

South Premiere Power Corp., another San Miguel unit, is also seeking around P15.8 billion, covering added generation costs from 2022 to 2023.

Meanwhile, Meralco and Phinma Energy Corp. filed for recovery of more than P1.75 billion in CIC-related items.

Smaller utilities have likewise lodged similar requests.

La Union Electric Co. filed for about P1.78 billion, while Nueva Ecija II Electric Cooperative seeks roughly P1.76 billion, both citing fuel-driven rate distortions since 2022.

The filings stem from CIC clauses in long-term power supply deals, designed to allow temporary adjustments when extraordinary shifts in global fuel markets make contracted rates unviable.

“So our target now is to ensure that the recovery of these amounts will not impact so much the electricity consumers,” ERC chair Francis Saturnino Juan said.