PSALM discovers P238.3 Million unremitted UC collections and demands immediate remittance by Coops

https://www.dof.gov.ph/index.php/psalm-discovers-p238-3-million-unremitted-uc-collections-and-demands-immediate-remittance-by-coops/

The Power Sector Assets and Liabilities Management Corp. (PSALM) discovered that about P238.3 Million has been collected from electricity consumers by eleven (11) electric cooperatives as Universal Charge (UC), but not remitted to PSALM as the administrator of the UC. PSALM sent out final demand letters to these cooperatives with a stern warning that aside from being liable for interest charges, these cooperatives and their officers will face civil, administrative and criminal charges.

The UC is a non-by passable charge collected from electricity consumers on a monthly basis by distribution utilities including cooperatives, for the recovery of Stranded Debts, Stranded Contract Costs of the National Power Corporation and other mandated purposes under the Electric Power Industry Reform Act of 2001 (EPIRA). Such UC collections must be remitted to PSALM as administrator on or before the 15th day of the succeeding month together with the required reports.

In the demand letters, PSALM reminded delinquent cooperatives that every month of non-remittance of UC to PSALM is one count of violation of the EPIRA, which is punishable by fines and penalties of up to P50 Million. In addition, the directors and officers that allowed such violation by the cooperatives may be liable for imprisonment of up to two years and/or fine of double the amount of the damages caused. Patent refusal to comply with the EPIRA may further expose officers to a fine of up to P5 Million and/or imprisonment of up to six years. In addition to these consequences in the EPIRA, PSALM also stressed that non-remittance of UC is tantamount to Estafa by misappropriation under the Revised Penal Code, and thus punishable by imprisonment of up to 2o years.

PSALM President and CEO Irene Joy Besido Garcia said that “Non-remittance of UC collections to PSALM is fraud perpetrated against the consumers who paid for the UC and against the Government that is mandated to use the UC in accordance with EPIRA. PSALM will continue to relentlessly pursue all efforts to collect what is legally due to it. It will not allow delinquent coops to get away with illegal use and misappropriation of the UC collections.”

Camarines Sur III Electric Cooperative Inc. (CASURECO III) tops the list of the 11 delinquent coops with the highest unremitted UC collections amounting to P66.281 Million. The demand letter was addressed to CASURECO III Chairperson Ana Sylvia Alsisto and other officers. Second on the list is Albay Electric Cooperative Inc. (ALECO), headed by Supervisor Omar Mayo and Operations Manager Belinda Pempena, with unremitted UC collections amounting to P40.6 Million, while next is Abra Electric Cooperative Inc. (ABRECO), headed by Chairperson Gloria Corrales, with unremitted UC collections of P36.886 million.

PSALM also called out coops that not only failed to remit UC collections, but also refused to submit the required monthly UC collection reports to PSALM. Non submission of such reports is a violation of the UC Guidelines issued by the ERC.

Those coops included Maguindanao Electric Cooperative Inc. (MAGELCO), under President Saikuna Mamokhan, with unremitted UC collections of at least P26.28 million based only on available reports, Ticao Electric Cooperative (TISELCO) under President Noe Ibañez, with unremitted UC collections of at least P9.421 million, Lanao del Sur Electric Cooperative Inc. (LASURECO), under General Manager Nordjiana Ducol, with unremitted UC collections of at least P8.685 million, and Siasi Electric Cooperative (SIASELCO), under President Tawita Baridji, with unremitted UC collections of at least P2.764 million.

The coops that have incomplete reportorial requirements are likely to be liable to PSALM for much more unremitted UC collections because the specific amounts demanded by PSALM are only based on the submitted collection reports.

Other coops that received demand letters from PSALM were Basilan Electric Cooperative Inc. (BASELCO), led by its President Nick Acdalin, with P31.531 million unremitted UC collections, Cotabato Electric Cooperative Inc.-PPALMA (COTELCO-PPALMA), led by its President Ernesto Mansilla, with P7.428 million unremitted UC collections, Masbate Electric Cooperative Inc. (MASELCO), led by its Manager Romeo Acuesta, with P4.917 million unremitted UC collections and Romblon Electric Cooperative Inc. (ROMELCO), led by its President Diosdado Concil, with P3.456 million unremitted UC collections.

Copies of the demand letters were furnished Finance Secretary Carlos Dominguez III, who chairs the PSALM Board of Directors as well as Energy Secretary Alfonso Cusi, who is the vice-chair of the said Board. The National Electrification Administration (NEA) and the Energy Regulatory Commission (ERC) were also provided copies of PSALM’s demand letters.

Garcia reminded the coops that “Every month of deficient UC remittance is one count of Estafa.” She said that after sending out the demand letters, PSALM has the right to pursue the necessary legal steps against the coops and their officers and directors without any further notice to them.