The Energy Regulatory Commission (ERC) has issued show cause orders directing 25 electric cooperatives (ECs) and three private distribution utilities (DUs) to explain why they should not be penalized for failure to provide information on the pass-through fuel cost charged against their customers.
This develops amid the ongoing fuel audit verifying the accuracy of fuel charges imposed on electricity consumers under various power supply agreements (PSAs).
The various electric cooperative and distribution utilities are obligated to provide information within prescribed timelines, including Resolution No. 16, Series of 2009, Resolution 24, Series of 2011, and by their respective PSAs.
The ERC said the submission of reports on fuel charges is a condition for the grant of authority to charge a generation fee under each PSA and non-compliance with reportorial requirements undermine their obligation to procure energy for captive consumers in the least cost possible.
The regulator warned the distribution utilities in question face administrative penalties unless they provide verified explanations.
It said the audit initiated last year is part of efforts boosting transparency and accountability in the energy sector by scrutinizing fuel charges and ensuring their accuracy “to safeguard the rights and interests of electricity consumers, preventing the undue burden of unjustified costs.”
Electric cooperatives and distribution utilities with show cause orders include Abra Electric Cooperative, Aklan Electric Cooperative, Albay Electric Cooperative, Camiguin Electric Cooperative, Capiz Electric Cooperative, Camarines Sur II Electric Cooperative, Cebu I Electric Cooperative, Central Negros Electric Cooperative, North Cotabato Electric Cooperative, Davao Norte Davao Oriental Electric Cooperative, Don Orestes Romualdez Electric Cooperative, Iloilo III Electric Cooperative, Kalinga Apayao Electric Cooperative, La Union Electric Cooperative, Northern Davao Electric Cooperative, Oriental Mindoro Electric Cooperative, Pampanga III Electric Cooperative, Pampanga Rural Electric Cooperative, Surigao Sur II Electric Cooperative, Zambales II Electric Cooperative, Iligan Light and Power Inc., Mactan Electric Co. Inc., and the Olongapo Electric Distribution Co.
The Ilocos Sur Electric Cooperative, Isabela II Electric Cooperative, Lanao Del Norte Electric Cooperative, Pangasinan III Electric Cooperative, and Zamboanga Sur I Electric Cooperative who each hold PSAs received two show cause orders.
