Sunstar Baguio
THE Baguio City Council said the Benguet Electric Cooperative (Beneco) should not refund collections in the Power Purchase Agreement (PPA) to consumers who have not been paying the PPA in the past.
The City Council summoned Beneco officials to its session Monday, saying the cooperative erroneously interpreted an Energy Regulatory Commission (ERC) order, which states that refund of over collections of PPA should apply to all existing customers regardless of whether they consumed power from February 1996 to October 2004 or not.
The ERC order referred to a petition of Cebu Electric Cooperative.
However, the council said Beneco should have filed a separate petition as the situation for Baguio and Benguet consumers might not be the same with other cooperatives.
"It is elementary that the case of another cooperative is not the same as Beneco's," Councilor Perlita Rondez told Beneco representatives led by its counsel, Delmar Cariño, and Jun delos Santos, head of the corporate communications department.
Councilor Fred Bagbagen added, Beneco should have initiated an inquiry with the ERC and not relied on a separate case. The councilor said big loaders who have not been paying before are the ones who will greatly benefit from this.
He said that only those who paid PPA in past billings should have a refund.
Cariño reasoned this practice is done not just by the Beneco but by other cooperatives under the umbrella of the Northwestern Electric Association, where Beneco happens to be a member.
An over collection of P33 million from the PPA is currently being refunded by the Beneco in compliance with the ERC order.
Beneco is set to call for another assembly next month to clarify matters on refund.
Cariño said the Beneco is willing to study the City Council's suggestion but said in the meantime, the cooperative will continue giving refunds using as basis the ERC order on the Cebu Electric Cooperative dated October 17 2006.
Published in the Sun.Star Baguio newspaper on March 24, 2011.
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