ERC denies PUD Olongapo request, reiterates order to collect universal charges

The Energy Regulatory Commission (ERC) denied the request of the Public Utilities Department (PUD) of Olongapo City to defer the collection and remittance of Universal charges (UC) for missionary electrification and environmental charge.

In its request, the utility reasoned that it obtained copy of the Order/Decision only during the UC public consultation on June 20, 2003. It is now in the process of revising its computer program to incorporate these new charges.

ERC Chairman Manuel R. Sanchez pointed out that said Order/Decision was published in newspapers of general circulation. “Publication is a general notice,” he noted.

Chairman Sanchez also said that “the provision of the law on the collection of UC as well as the Commission’s Order under ERC Case No. 2002-165 and the Decision on ERC Case No. 2002-194 are clear and requires no explanation.”

Sec. 34 of R.A. 9136 requires the imposition of the UC within one (1) year from the effectivity of the said Act to be fixed and approved by the ERC. It is a non-bypassable charge which shall be passed on and collected from all electricity end-users on a monthly basis by the distribution utilities.

Distribution utilities like PUD Olongapo are required to remit UC collections to TRANSCO on the succeeding month from the date of collection. TRANSCO, in turn, remits the funds to PSALM Corporation which was tasked under R.A. 9136 to administer the said funds.

August 01, 2003