To : All Private and Public Corporations in the Power Sector / All Local Government Units / All Electricity Consumers
From : Secretary of Energy
Date : 16 April 2020
As part of its various responses to the imposition, pursuant to Proclamation No. 929, dated March 16, 2020, of Enhanced Community Quarantine (ECQ) throughout Luzon for the period of 16 March to 12 April 2020, as a result of COVID-19 public health emergency, the Department of Energy (DOE) issued an Advisory dated 18 March 2020, providing for, among others, the deferment of obligations and dues for 30 days after 14 April 2020, for the benefit of electricity consumers.
On 7 April 2020, however, the President ordered the extension of the ECQ over the Luzon Island until 30 April 2020, and directed all concerned agencies to continue implementing existing guidelines relative to the ECQ during the period of extension.
On view of the foregoing and in line with the policies and purposes of Republic Act No. 11469 known as "Bayanihan to Heal as One Act", which authorizes the President to adopt measures in response to the crisis brought about by the pandemic including, among others, the conservation and regulation of the distribution and use of power, fuel, energy and water, and ensure adequate supply of the same, the DOE hereby issues the following directives to guide the electric power industry participants, to wit:
- All electricity consumers shall be provided a grace period to pay their bills falling due during the original and extended ECQ periods without interest, penalties, fees and charges. For this purpose, the accumulated electricity bills falling due during the ECQ shall be amortized in four (4) equal installments, payable in the first fur (4) months following the end of the ECQ.
The Energy Regulatory Commission (ERC) shall issues the detailed guidelines on the implementation of the same;
- For all public and private corporations in the power sector, all obligations falling due during the original and extended ECQ, shall be given a similar grace period without interest, penalties, fees and charges. Likewise, four (4) months amortized payment shall be allowed for all unpaid balances of obligations during the said period, without interest, penalties, fees and charges. This shall apply to the following:
a. Payments due to the National Power Corporation, the National Transmission Corporation, the National Grid Corporation of the Philippines, and the Power Sector Assets and Liabilities Management Corporation (PSALM) including power bills and rate adjustments (i.e. ACRM, deferred GRAM and ICERA);b. Payments due to fuel/resource suppliers of generating facilities including coal, oil, steam supply and natural gas;
c. Pyments due to Independent Power Producers;
d. Payments of Universal Charges (UC) as administered by PSALM, provided that the deadline of PSALM to disburse the UC to beneficiaries shall likewise be given grace period by the same number of days given herein; and
e. Payments to Independent Electricity Market Operator of the Philippines of total trading amounts and other charges. - Payment of the Feed-in Tariff Allowance is hereby suspended for another billing period.
- Arrangement for the payment of contestable customer obligations with their retail electricity suppliers falling due during the original and extended ECQ shall be according to their negotiated agreements. Nonetheless, they are encouraged to adopt the same or similar scheme as stated herein.
However, to lessen the impact and help manage the cashflow in the energy supply chain, the DOE reiterated its call or the immediate and proportionate remittance of payments received ahead and within the due dates to the respective creditor and supplies.
Likewise, the DOE earnestly seeks the consideration of all local government units, to allow a similar grace period and other related mechanisms in the collections of applicable taxes, fees and dues from energy facilities in their respective jurisdictions.
Finally, we call on those electricity consumers who are capable to pay to help cushion the impact to the energy supply chain by continuing to pay their bills within the original due dates.
For immediate compliance and guidance of all concerned.
