Tuesday, July 19, 2011

Audit on power coop's 'over-collection' sought


Tuesday, July 19, 2011

ANGELES CITY -- A group of consumers based in Parañaque City is asking the Energy Regulatory Board (ERB) to conduct a "regulatory audit" on alleged over-collection by the Angeles Electric Corporation (AEC) from 2005 to 2008 amounting to P528,977,139.
Pete L. Ilagan, president of the National Association of Electricity Consumers for Reforms Inc. (Nasecore), said their findings were based on the commission's Unbundling Decision dated June 23, 2004 under ERC Case Number 2001-894, granting AEC's annual revenue requirement.
Ilagan stated that Nasecore studied AEC's 2006 to 2009 annual reports and compared its ERC-approved annual revenue requirement against its actual annual revenues. This study was conducted to determine if AEC was getting its ERC-approved annual revenue requirement, he said.
Based on its study, the Nasecore stated that AEC had an over-collection of almost P529 million from 2005 to 2008 representing net of purchased power cost.
No overcharging
The AEC, meanwhile, has called "absurd" the allegations made by the Paranaque-based group that the electric power firm has overcharged its customers by more than P500 million from the period of 2005 to 2008.
Myra Rivera, head of the AEC Customer Service Department, clarified that while the unbundled rates of AEC, under Energy Regulatory Commission (ERC) Case Number 2001-894, were approved in 2004, the implementation was deferred until July 2008, pending the resolution of a motion for reconsideration that was filed by the utility with the ERC.
"It is therefore impossible for AEC to have overcharged its consumers because its distribution rates were never changed during the said period," Rivera said.
In fact, prior to the 2008 implementation of its unbundled rates, AEC distribution rates never increased for 12 years. The firm has remained under the return-on-rate basis (RORB) methodology since 1996 until 2008.
The unbundling of the rates of distribution utilities is required under the Epira law as a prerequisite for open access and retail competition.
"This and any information about the claims of the group may be verified with the ERC, the industry's regulatory body which closely oversees the operations of distribution utilities in the country and ensures the welfare of electricity consumers," Rivera said.
Mandate
With this, the Nasecore said the ERC should be reminded of its legal mandate of ensuring the promotion of consumers' interest.
Ilagan even claimed that the ERC failed to monitor and review the operations of AEC to determine if the power firm is not overcharging its consumers based on its commission-approved annual revenue.
The Nasecore is urging the ERC to act swiftly on its request to protect consumers from unjust and unreasonable rates.
Ilagan also sent his letter to ERC to other government officials, including Energy Secretary Jose Rene Almendras; Senator Sergio Osmena, Senate committee chair on energy; Senator Juan Miguel Zubiri, Senate committee chair on cooperative development; Congressman Ponciano Payuyo, Apec Partylist representative; Congressman Carmelo Lazatin; Governor Lilia Pineda; and Mayor Edgardo Pamintuan, among others.
Published in the Sun.Star Pampanga newspaper on July 20, 2011.

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