FILE PHOTO Energy Regulatory Commission (ERC) /INQUIRER.net
MANILA, Philippines — Senate President Sherwin Gatchalian sought more powers for the Energy Regulatory Commission (ERC) to audit not just distribution fees, but also the pass-through costs of generating electricity.
Pass-through costs are fees added directly to the bill of energy consumers based on a utility company’s expenses from producing said utility, such as production and delivery rates from power plants and distributors.
“Pass-through charges need to be audited. We, consumers, need to be assured that what is being passed on to us is not excessive. It’s common sense, if you’re a businessman, of course you want to pass on the highest amount to the consumer so that you can earn a high profit… but the regulator is there to ensure that you earn a decent amount but not too much,” Gatchalian said during the Senate energy panel hearing.
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