ERC directs PUD-Olongapo to refund CERA

The Energy Regulatory Commission issued an Order dated April 28, 2004 to the Public Utility Department of Olongapo City (PUD-Olongapo) directing it to implement the refund of the Currency Exchange Rate Adjustment (CERA) it collected from its customers. The refund will be effective the next billing date from PUD-Olongapo’s receipt of this Order.

On January 6, 2004, ERC ordered PUD-Olongapo to refund to its customers the CERA it collected at the rate of Php 0.1536/kWh per month for a period of one (1) year. The amount collected by the power utility reached Php 17,970,745.17.

Olongapo City’s PUD requested for a three-month deferment of the refund. Noting that the three months has lapsed, the Commission issued the new Order to effect the return of the unauthorized CERA charges to affected customers.

“It is our duty to monitor and make sure that the interests of consumers are protected, in like manner that we protect and promote the welfare of electric power producers and investors,” ERC Chairman Rodolfo B. Albano, Jr. said.

Review of the records showed that PUD-Olongapo collected CERA for the period September to December 2001 from its customers without prior approval by the ERC.

CERA covers adjustments for unavoidable fluctuations in the exchange rate of Philippine Peso as against the US Dollar. The collection of these charges must be justified to ERC by a distribution utility before it can be billed to its customers.

May 7, 2004