ERC confirms PPA charges of 10 ECs
The Energy Regulatory Commission (ERC) approved in its January 11, 2005 regular meeting the refund for Purchased Power Adjustment (PPA) over-recoveries made by six electric cooperatives (ECs) from their customers. Four ECs, on the other hand, were authorized to collect from its customers PPA under-recoveries.
Over-recovery or under-recovery is the difference between the actual power costs incurred by an EC and the actual charges it collected from electricity end-users.
ECs ordered to refund to its customers are:| Name
of Cooperative |
Over
recoveries (PhP) |
Over
recoveries (PhP/kWh) |
Period
covered |
| La Union Electric Cooperative, Inc. (LUELCO) | 99,863,348.00 |
0.1583 |
Feb.
1996 to April 2004 |
| Quezon II Electric Cooperative, Inc. (QUEZELCO II) | 5,298,339.00 |
0.1009 |
Jan.
2000 to Nov. 2003 |
| Lubang Island Electric Cooperative, Inc. (LUBELCO) | 444,098.00 |
0.0416 |
Feb.
1996 to July 2004 |
| Masbate Electric Cooperative, Inc. (MASELCO) | 5,413,727.00 |
0.0315 |
Feb.
1996 to May 2004 |
| Davao Oriental Electric Cooperative, Inc. (DORECO) | 7,213,758.00 |
0.0259 |
Feb.
1996 to April 2004 |
| Occidental Mindoro Electric Cooperative, Inc. (OMECO) | 5,494,384.00 |
0.0259 |
Feb.
1996 to March 2004 |
| Name
of Cooperative |
Under
recoveries (PhP) |
Under
recoveries (PhP/kWh) |
Period
covered |
| Leyte I Electric Cooperative, Inc. (LEYECO I) | 8,695,036.00 |
0.0496 |
Feb.
1996 to Aug. 2004 |
| Pangasinan I Electric Cooperative, Inc. (PANELCO I) | 4,733,667.00 |
0.0197 |
Feb.
1996 to Sept. 2003 |
| Iloilo I Electric Cooperative, Inc. (ILECO I) | 3,901,711.00 |
0.0069 |
Feb.
1996 to Aug. 2003 |
| Romblon
Electric Cooperative, Inc. (ROMELCO) a. Romblon b. Sibuyan Island |
2,200,404.00
|
0.0761
|
Feb.
1996 to Dec. 1997
|
“As a regulator, it is incumbent upon ERC to protect the interests of both the electricity providers and that of the consumers. The Commission makes sure that charges to electricity consumers are fair and just,” ERC Chairman Rodolfo B. Albano, Jr. said.
The Commission will issue an Order for the PPA confirmations, specifying the date when the refund or payment will commence.
PPA carries adjustment charges on power costs drawn
from the National Power Corporation (NPC) and Independent
Power Producers (IPPs). It includes charges on system
losses, power actually used by the ECs in the discharge
of its mandate but not to exceed 1% of its total kWh
purchased. These charges are being carefully examined
by the ERC prior to confirmation. With the unbundling
of electricity rates as required under Section 36 of
the Electric Power Industry Reform Act (EPIRA), this
cost component is no longer a separate component in
the electricity bill as it is reflected in the billings
appropriately.
January 14, 2005