Aboitiz firm to give P180-million refund to Mindanao customers

Business Mirror

13 Jan 2014 

 

Written by Manuel T. Cayon

DAVAO CITY—Aboitiz-owned Therma Marine Inc. (TMI), which operates the two power barges in Mindanao, said it has released P180 million representing its refund to consumers for overbilling in the 2011 power supply to 21 electric cooperatives and electric distribution companies in the island.

Jovy P. Batiquin, president and chief operating officer of TMI, said refund to its customers in Mindanao represented the “adjustments in rates for power delivered last 2011.”

The amount was computed from the provisional rate approved by the Energy Regulatory Commission (ERC) when TMI and the final power rate also determined by the ERC.

“The ERC has decided that the final rate must be lower than the earlier approved provisional rate so a refund will be implemented without any delay,” he said.

The power barges offshore of Nasipit, Agusan del Norte, and offshore of Maco, Compostela Valley, churn out power using diesel. The Mindanao grid supplies power to Mindanao relying on its hydroelectric plants in the Agus and Pulangui River complexes in the Lanao provinces and in Bukidnon, respectively.

“Since there was an immediate need for power by Mindanao in 2011, Therma Marine started delivering power to the electric cooperatives and distribution utilities as soon as possible, pegging our rates on the provisional authority granted to us by the ERC,” Batiquin said.

He said the “provisional authority was issued while the ERC assessed our proposed rate structure.”

The supplied power to 21 electric cooperatives and distribution companies at the time of serious inadequate electric power.

“The refund will be implemented within six months as mandated by the ERC in its final order received on January 3. The ERC, likewise, ordered the electric cooperatives and distribution utilities to apply the refund to its consumers,” he said.

Batiquin said the refund was already sent to the 21 electric cooperatives in the December 2013-to-January 2014 billing cycle, to wit:

Agusan del Norte, Agusan del Sur, Bukidnon Second, Camiguin, Cotabato, Davao del Norte, Davao del Sure, Davao Light and Power Co., Davao Oriental, Misamis Occidental I, Misamis Oriental II, South Cotabato I, South Cotabato II, Sultan Kudarat, Surigao del Norte, Surigao del Sur I, Surigao del Sur II, Zamboanga City, Zamboanga del Sur II and Zambonga del Norte, Zamboanga del Sur I.

Batiquin said consumers in Mindanao must contact their respective local distribution utility and electric cooperative “to determine how much refund will be given to them and the process for the refund.”

Arturo Milan, executive vice president and chief operating officer of Davao Light and Power Co., said the company would be awaiting notice from the TMI on how much it would be refunding its client households and businesses.

But he said the refund would come at an unlikely period when the the National Power Corp. (Napocor)would also begin charging higher distribution charge during the summer months.

“My concern is that the amount of refund may be lower than the Napocor charge during the hot months, usually beginning February up to June,” he said.

“This may likely dampen the impact of the refund, and my other concern is how consumers may react in that case,” he said.

He said the Davao Light would make a prior announcement to explain why a refund would be done and how much “prior to implementing the refund.” The explanation would be placed in the message box in the billing that would be sent to individual consumers.

The Davao Light franchise covers Davao City, Panabo City and the Davao del Norte towns of Carmen, Braullio Dujali and Santo Tomas.   source