ERC completes confirmation of NMT/NEECO III's PPA charges
The Energy Regulatory Commission (ERC) completed the confirmation of the Purchased Power Adjustment (PPA) charges of the National Electrification Administration Management Team/Nueva Ecija III Electric Cooperative, Inc. (NMT/NEECO III) from February 1996 to November 2004. In a Decision in ERC Case No. 2001-340, the ERC confirmed that NMT/NEECO III had an over-recovery amounting to Two Hundred One Million Five Hundred Sixty Nine Thousand Two Hundred Twenty Five Pesos (PhP 201,569,225.00) which is equivalent to PhP 0.3771/kWh.
In a related Decision in ERC Case No. 2005-022 entitled “Antonio Atendido Tan vs. Ramon De Vera et. al.” the ERC ordered NMT/NEECO III to strictly implement the ERC’s directive to refund the aforesaid amount to its member-consumers. The Decision resolved the verified complaint of Mr. Antonio Atendido Tan against NMT and NEECO III for allegedly over-billing him in the amount of One Hundred Sixty Six Pesos and Seventy Eight Centavos (PhP 166.78) as a result of the imposition of the PPA for the billing periods 10 September 2004 to 10 October 2004 and 11 October 2004 to 11 November 2004.
“Errors in computation are at times unavoidable. Thus, the DUs are advised to be extra careful in computing their PPA charges to consumers and strictly comply with the ERC’s policy on the PPA. Refunds to consumers resulting from PPA over-recoveries can cause misunderstandings and strained relationships between the DUs and their customers,” ERC Commissioner and Officer-in-Charge Maria Teresa A. R. Castañeda said.
The PPA covers the increases and decreases in the cost of power bought from the National Power Corporation (NPC) and/or Independent Power Producers (IPPs). Customers will pay for under-recoveries and will be refunded for over-recoveries. PPA charges are revenue-neutral and are meant to ensure that only the actual costs of power are recovered by the DUs.
October 17, 2006