By Francis Allan L. Angelo
Two electric cooperatives in Western Visayas face sanctions from the Energy Regulatory Commission (ERC) for allegedly violating its advisories at the height of the lockdown due to COVID-19 pandemic.
Central Negros Electric Cooperative, Inc. (CENECO) and Iloilo III Electric Cooperative, Inc. (ILECO III) were found to have violated ERC advisories suspending the collection of the Feed-In-Tariff Allowance (FIT-All) in March and April 2020 and the Universal Charge-Environmental Charge (UCEC) in May.
The FIT-All charge amounting to P0.0495 per kilowatt-hour (kWh) is stored in a fund administered by the government-owned National Transmission Corp. (TransCo), which remits the amount to eligible renewables developer. It is a form of subsidy paid by electricity consumers for the portion of power supply generated from renewable energy sources.
The UCEC amounting to P0.0025 per kWh goes to the watershed rehabilitation and management activities of the state-led National Power Corp. (NAPOCOR).
During a public briefing over the weekend, ERC Chairperson and CEO Agnes Devanadera said the agency has received complaints against power distributors, apart from Manila Electric Co. (Meralco), and found they have violations.
Meralco was recently slapped with a P19-million fine for alleged “failure to clearly indicate that the bills were estimated” and “failure to comply with the mandated installment payment arrangement.”
“Nag-review kami ng mga report at nakita natin na maraming lumabag. Iyong ibang paglabag nila, kasi sabi natin huwag nang singilin ‘yong ‘FIT-All;’ huwag nang singilin iyong universal charge/environmental charge pero naningil pa rin sila. Iyon, mga paglabag ‘yon. So, ang ginawa ng ERC sinulatan itong mga ito at pinagpapaliwanag natin,” Devanadera said.
CENECO serves the cities of Bacolod, Silay, Talisay, Bago, and the towns of Murcia and Don Salvador Benedicto in Negros Occidental.
ILECO III covers the towns of Anilao, Banate, Barotac Viejo, San Rafael, Ajuy, Concepcion, Lemery, San Dionisio, Sara, Balasan, Batad, Carles and Estancia in Iloilo.
Apart from CENECO and ILECO III, the other distribution utilities that were made to explain were Olongapo Electricity Distribution Company (OECD); Misamis Oriental II Electric Cooperative, Inc. (MORESCO II); Camarines Sur II Electric Cooperative, Inc. (CASURECO II); and Batangas II Electric Cooperative, Inc. (BATELEC II).
In a statement posted on its website, the Philippine Rural Electric Cooperatives Association (Philreca) said before the order on suspending the collection of the FiT-All was released on April 15, rural utilities have already printed and distributed their customers’ bills.
“Most if not all statements reflected the collection of the FiT-All. Note that FIT-All charges suspension as stated in the April advisory is not indefinite (i.e., not suspended until further notice). For reference, the April 15 advisory states: ‘Item 9 – The collection of the FIT-ALL from electricity consumers is suspended for another billing period to be implemented on the next electricity bill to be issued by the collection agents’,” it added.
The advisory on UCEC suspension for May (which was “suspended until further notice”) was released on May 22, which means that the May billing statement has been printed, released, and distributed already.
“For succeeding billing periods (June onwards), electric cooperatives heeded to the call of ERC regarding the suspension of collection of UC-EC charges.”
The group urged the ERC to consult with the stakeholders involve for effective implementation of similar orders in the future.
“The timing of the release of the Advisories makes it impossible to implement the order on the billing period being asked for by the Commission. This only adds to the confusion of our member-consumer-owners.”
Philreca also said that “FIT-All and UCEC are pass-on charges, and not a single centavo is retained to the electric cooperatives.
“We cannot use this collection in our operations as ECs are merely collecting agents. As compliance to ERC Advisories (‘Actual payments received by the DUs are still required to be immediately remitted proportionately to the concerned entities’), ECs have remitted such collections to the appropriate agencies. ERC should order the concerned agencies to refund the collected charges and make appropriate arrangement with the Distribution Utilities on how to refund the same to the consumers.” (With reports from GMA News and BusinessWorld)
