Electrical cables crisscross one another as electric meters hang on posts in Barangay Old Capitol, Quezon City on July 11, 2023. Maria Tan, ABS-CBN News

MANILA -- The Energy Regulatory Commission (ERC) has advised consumers to still brace for higher electricity prices -- possibly until July -- due to unstable power supply in the Luzon grid.

ERC chairperson Monalisa Dimalanta has confirmed that two bill components are going up this June: the feed in tariff allowance, from over P0.03 to P0.08/kwh; and the 30 percent recovery of ancillary services of National Grid Corp of the Philippines last March or around P0.12/kwh, based on rough computation.

READ: Meralco says another electricity hike possible in June

The drop in the value of the peso against the US dollar will also have an impact on rate, as some power plants bill Meralco in US dollars. 

The series of yellow and red alerts which have hit the Luzon grid may also drive prices up.

Dimalanta says consumers can expect electricity prices to stabilize starting August, when the rains would have filled the hydropower facilities and other plants would have gone back to normal as demand decreases.

Meanwhile, Dimalanta said there is no decision yet on whether or not the electricity rates in June will already reflect the P15.7 billion to be paid to some generators, whose rates were capped by the ERC in late 2013 when market prices soar due to the Malampaya shutdown. 

The generators brought the matter to the Supreme Court and won.

According to Dimalanta, there is no decision yet on when the implementation of the recovery will be.

Based on estimates, the over P17 billion due to various power producers translates to an increase of more than P3/kwh, if done in a single tranche.

According to Dimalanta, the commission is looking into staggering the increase over a two or three year period.

NO DISCONNECTION, STAGGERED PAYMENT

Dimalanta admitted that it is already unlikely that the commission will issue an order to electric cooperatives and utilities to stop disconnecting clients who haven't paid higher electricity bills, or allow staggered payments.

Dimalanta said there is no law to anchor the order, unlike the previous administration's Bayanihan Law.

But Dimalanta said the commission will give consumers information regarding their rights when it comes to disconnection and staggered payments.

According to Dimalanta, if a consumer cannot afford to pay the bloated bill, he or she has the right to ask for terms from the cooperative or utility.

Meralco, for its part, explained that the electricity consumed had been paid for by the utility even before it charged consumers, so allowing the "no disconnection policy" will hurt the company.