CITY OF SAN FERNANDO – Customers of the San Fernando Electric Light and Power Company, Inc. are advised to prepare for possible changes in their monthly electricity bills from June to September 2024.
This, in the wake of SFELAPCO’s compliance with the Energy Regulatory Commission’s recent directive requiring all utilities to delay the collection of the June generation charge. The generation charge is a pass-on fee collected by distribution companies and forwarded to the Wholesale Electricity Spot Market (WESM) where distributors typically source their power.
ERC has instructed a hold on issuing June 2024 bills until the final WESM bill is received, causing a delay in bill distribution to consumers. Given the tight supply conditions in the Luzon grid leading to increased generation expenses, adjustments in electricity bills are being made in accordance with ERC’s instructions.
SFELAPCO will gradually collect a portion of the June generation charges over the coming months to lessen the impact on customers.
In the June bill, customers will see a significant reduction in the generation charge. In compliance with the ERC directive, only a quarter or 25% of the usual monthly add-on for generation will be charged. The remaining 3/4 of the charge will be spread out in installments across the July, August, and September 2024 billing cycles.
Consequently, the Generation Rate for the next three months will see an increase of around P2.63/kWh on top of the actual generation charge for the month. The ERC initiated this measure to prevent consumers from being overwhelmed by the steep electricity prices from the WESM, where SFELAPCO currently procures power.
As a result of certain power plants’ malfunctions, there was a supply shortage while consumer electricity demands surged during the summer. This led to a notable spike in electricity prices in the market.
“By spreading out the payment over multiple months, ERC aims to lessen the impact on customers,” noted SFELAPCO. Simultaneously, in response to the delayed distribution of the June electricity bills, SFELAPCO assures customers that payment due dates will be adjusted to allow for sufficient time.
“The company acknowledges the importance of keeping customers informed and will continue to provide clear updates on any billing procedure changes,” said SFELAPCO.
