Senators on Wednesday, October 5 commended the Energy Regulatory Commission (ERC) over its decision to reset power transmission rates by commencing refunds for “exorbitant” weighted average cost of capital (WACC) rates that contribute to higher electricity costs for consumers.

Senator Risa Hontiveros urged the ERC to execute its announcement, describing that the move would serve as an early Christmas gift for power consumers.

“Magandang balita itong simula ng reset process para sa mas patas na transmission wheeling rates na parte ng ating buwanang bayarin sa kuryente (This plan to start the reset process to ensure a fair transmission wheeling rates that is part of our electricity costs is good news),” Hontiveros said in a statement.

“But why have one piece of good news, when we can have two? Let us also start the process of refunding consumers for the unreasonably high 15 percent weighted average cost of capital (WACC) being unduly collected since 2015,” Hontiveros further said.

Hontiveros said it has been seven years that electricity consumers are forced to endure these unfair WACC rate.

“Consumers deserve not only a reset of WACC rates, but also a refund for the immense burden we have endured over the years. Dapat mabigyan ng hustisya ang mga kababayan nating napilitang indahin itong mataas na WACC rates kahit may pandemya at lugmok ang ekonomiya (Our people deserve justice since they are forced to endure these high WACC rates even though there is already a pandemic and the economy is down),” she stressed.

Senator Sherwin Gatchalian also lauded the ERC over the move, although he noted that the move to reset power transmission rates has been delayed for 10 years.

“ERC’s review of transmission rates is long overdue. I have long been following up on this from the ERC. I’m confident that this would lower transmission rates and ultimately residential bills,” Gatchalian said.

In addition, Gatchalian said the ERC’s reset of transmission rates would also establish consumer trust that what they are paying for is an accurate amount.

“Kapag nagkaroon ng bagong rates, mawawala ang anumang agam-agam ng mga consumers na may nagsasamantala. Sa halip, magkakaroon sila ng kompiyansa na ang anumang bayarin sa kuryente ay tama at walang labis (If there are new rates, it will allay consumers’ fear that they are taking advantage of. Instead it will foster confidence that any amount of electricity bill they get is accurate and fair),” the senator stressed.

“This is also crucial for new transmission lines and facilities. This provides an incentive for the NGCP to invest in new infrastructure as it guarantees they will recover all investments in new facilities,” he added.