The Department of Energy is urging electric cooperatives to “carefully scrutinize and not just accept the bills” that come from their power suppliers.
This as the Energy Regulatory Commission (ERC) issued more than 35 show-cause orders (SCOs) to generation companies (GenCos) “for failing to comply with the ERC’s directive to submit complete fuel purchase documents necessary in validating the reasonableness of generation charges being passed on to consumers.”
“We are fully supportive of the efforts of ERC to make sure that distribution utilities (DUs) or electric cooperatives examine the implementation of their power supply agreements with the generators,” DOE Secretary Raphael Lotilla said in a statement May 17, adding the DUs have an obligation to carefully scrutinize, not just accept the bills as they come from the power generators.
The GenCos themselves would have to be also transparent with the fuel costing, Lotilla stressed.
Of the GenCos issued SCOs, two are in Panay – the Palm Concepcion Power Corporation (PCPC) and Panay Energy Development Corporation (PEDC), where DUs in Negros Occidental are sourcing power from, as well as the FDC Misamis Power Corporation (FDC), which signed a one-year PSA with the Northern Negros Electric Cooperative in August last year.
The ERC said May 14 that fuel invoices must be submitted on a monthly basis to support pass-through fuel costs reflected in the billings of GenCos. “These invoices are necessary for DUs to verify whether the volume, price, and efficiency rates of pass-through costs fall within the formula and cap prescribed by the Commission in the order or decision approving the implementation of their PSAs.”
If no sufficient basis is found for the recovery of the costs, they cannot be charged to consumers, or must be refunded if already billed. “Failure by either DUs or GenCos to submit the required documents and to validate the pass-on charges may result in administrative liability and the imposition of fines.”
The ERC said it continues to conduct rigorous fuel audits to make sure that only fair and reasonable costs are being charged by regulated entities. “We owe it to the Filipino consumers to protect them from unnecessary charges and ensure that they’re not paying more than they should for electricity.” ||
