Consumer group seeks PECO refunds anew

By Joseph B.A. Marzan

 

Following the decision of the Energy Regulatory Commission (ERC) ordering the Panay Electric Company (PECO) to refund to P527.7 million to its customers, another consumer group is seeking to refund another kind of collections from Iloilo City’s former energy distributor.

The newly-established One Panay Consumer Alliance Inc. (OPCAI) held a press conference on January 29, 2021 to discuss their agenda.

In its Facebook page, the OPCAI said it is an organization that “upholds and protects consumer rights, advances consumer interests, promotes consumer awareness, and undertakes initiatives for consumer protection (sic)”.

“The OPCAI’s aim is to represent the consumers, not only the consumers of one service. We are intending to represent consumers, not only for electricity, water, and internet. Anything and everything that is covered by the Consumer Act of the Philippines, we can bring them, and file, and represent the consumers in Panay Island,” according to OPCAI spokesperson Atty. Trox Tormon.

Tormon clarified that their push for the refund refers to the return of Bill Deposits and Meter Deposits paid by customers to PECO.

Bill Deposits are required of customers by distribution utilities of new and/or additional service and its equivalent to the estimated billing of one month to guarantee payment of bills.

Meter Deposits are collected from customers during application for a new service connection to guarantee against loss or damage of the electrical meter installed.

But the Magna Carta for Residential Electricity Consumers, which was approved by the ERC in 2004, exempted the collection of Meter Deposits.

The ERC also issued Rules on Meter Deposit Refunds in June 2008, which mandated Distribution Utilities (DU) including PECO, to provide refunds of Meter Deposits up to June 2004.

This case by the OPCAI is different from the decision by the ERC which was issued in September 2020 and promulgated last December, but was only publicized this January 2021.

That decision only referred to Generation, Transmission, and Systems Loss Rates, as well as Lifeline and Inter-Class Cross Subsidies.

Tormon did not mention a specific time period as to the refunds to be covered, but only said that consumers can seek their help “as long as they can present proof of Bill Deposits and Meter Deposits”.

“We were actually unaware of the decision until it was made available for posting. Prior to that September 2020 ruling of the ERC, we were already preparing to file the Bill Deposit and Meter Deposit Refund cases. These are separate and distinct,” Tormon added.

As to consumers who lost their bills or deposit receipts, he said they can trace consumers with pending refunds based on PECO records, which he said that the company has provided them substantial compliance with.

“There was an ERC ruling issued to PECO mandating that they make available all of their records. We go back and trace those people who have paid their bill deposits and meter deposits. We will provide updates as we go along,” Tormon added.

OPCAI said the refunds it is demanding could amount to P800 million.

The refunds will depend on how much the customer paid and for the duration which they have paid these deposits, according to OPCAI treasurer Irene Lim.

“The ERC has a formula for the refunds, so they will be the one computing, and we will validate it against the figures from the database. There will be varying amount for each [consumer] who has deposited and also depending on the length of time,” Lim said.

Residential consumers who wish to seek refunds via OPCAI will have to apply as a member before they can file claims with them.

Tormon said that they will be having booths or kiosks in public areas where residents can approach for assistance.

The schedule of the kiosks will be announced by the OPCAI in the coming days.