ERC orders 3 power utilities to refund customers
By Myrna M. Velasco – May 31, 2022, 3:16 PM
from Manila Bulletin
At least three electric cooperatives (ECs) in the Luzon and Visayas grids had been ordered by the Energy Regulatory Commission (ERC) to refund their customers aggregate P293.891 million worth of over-collections that accrued in their billings from 2004 to 2017.
The ECs include Central Negros Electric Cooperative Inc. (CENECO) in the Visayas grid; Pangasinan I Electric Cooperative Inc. (PANELCO I); and La Union Electric Cooperative Inc. (LUECO) in the Luzon grid.
The biggest refund will be extended to the customers of CENECO at P237.949 million which accumulated from February 2004 to December 2017; while LUECO customers will have pay-back of P31.039 million accruing from January 2014 to December 2016.
For the customers catered to by PANELCO I, the total refund to be reflected in their bills will be P24.903 million, which are over-recoveries racked up from January 2014 to December 2016.
In line with the mandated pay-back to customers, the ERC conveyed that the distribution utilities (DUs) “were directed to submit a monthly report showing the effected refund until the amount shall have been fully refunded.”
ERC Chairperson Agnes T. Devanadera noted that the notice on the refund order had already been issued “so that the concerned DUs can already reflect the necessary bill adjustment and the consumers, in turn, will immediately benefit from the refund.”
The chief regulator further explained that the refund accounts for the net over-recoveries of the three power utilities on the prescribed automatic cost adjustments as well as the corresponding true-up (adjustments) on their tariffs as drawn based on performance-based ratesetting (PBR) methodology.
The PBR-anchored tariffs of regulated power utilities, in particular, are determined every reset period of four years; then there’s a confirmation process in which the ERC will evaluate if there had been under-recoveries or over-recoveries; and if there had been over-collections in the pass-on of the rates, the ERC will order warranted refund to customers.
Devanadera emphasized that the resulting pay-back to customers had been based on the scrutiny and final determination of the Commission on their respective applications for the approval of over-recoveries as well as under-recoveries on their prescribed rates and pass-on of charges.
“The Commission resolved to approve with modifications the respective applications of CENECO, PANELCO I and LUECO for the approval of the over-/under-recoveries based on the formula on the various automatic cost adjustments and true-up mechanisms and corresponding confirmation process,” the ERC chief stressed.
