The Central Negros Electric Cooperative is among the 25 electric cooperatives (ECs) recently ordered by the Energy Regulatory Commission to explain their “failure to provide information on the pass-through fuel cost charged to their customers”.
The ERC said the move comes in the course of its ongoing fuel audit, which aims to verify the accuracy of fuel charges imposed on electricity consumers under the Power Supply Agreements (PSAs).
“The ERC issued 33 show-cause orders (SCOs) directing 25 ECs and three private distribution utilities (PDUs) to explain why they should not be penalized for failure to provide information on the pass-through fuel cost charged to their customers…within the prescribed timelines set by ERC regulations…” the Commission said in a press release.
The ERC said the submission of reports on fuel charges is a condition for the grant of authority to charge generation rates under their PSAs. “Non-compliance with reportorial requirements undermines the distribution utility’s primary obligation to procure energy supply for its captive consumers in the least cost manner.”
The fuel audit initiated by the ERC last year is part of broader efforts to enhance transparency and accountability in the energy industry, the Commission said, adding that scrutinizing fuel charges and ensuring their accuracy would safeguard the rights and interests of electricity consumers, and prevent undue burden of unjustified costs.
Aside from Ceneco, the ECs issued with SCOs include the Capiz Electric Cooperative, Iloilo III EC, and Aklan EC in Western Visayas; Cebu I EC, Abra EC, Albay EC, Camiguin EC, Camarines Sur II EC, North Cotabato EC, Davao Norte Davao Oriental EC, Don Orestes Romualdez EC, Kalinga Apayao EC, La Union EC, Northern Davao EC, Oriental Mindoro EC, Pampanga III EC, Pampanga Rural EC, Surigao Sur II EC, Zambales II EC, Ilocos Sur EC, Isabela II EC, Lanao Del Norte EC, Pangasinan III EC, and Zamboanga Sur I EC.
The three PDUs are the Iligan Light & Power, Mactan Electric Company, and Olongapo Electric Distribution Co., the ERC added.
The Commission also advised DUs entering into an emergency PSA that based on a Department of Energy moratorium on the issuance of a certificate of exemption from the conduct of the competitive selection process under section, they can “procure EPSAs on account of force majeure or fortuitous event…”
“The justifications and proof of compliance with the requirements…shall be integrated in the application before the ERC as all EPSAs shall be subject to the Commission’s final review and approval.
“The EPSA shall be immediately implementable, and the rates to be charged shall be capped at the lowest ERC-approved generation tariff…and shall apply until the ERC issues its approval.
“The procurement of the emergency power supply shall not be entitled to any form of subsidy, including the Universal Charge for Missionary Electrification for Small Power Utilities Group areas,” the ERC said in an advisory. || NND News Team
