THE Energy Regulatory Commission (ERC) said that some consumers from Cagayan province can expect P20 billion worth of refunds from an electric cooperative due to the over-collection of pass-through costs.
ERC Chairperson and Chief Executive Officer Monalisa C. Dimalanta said that the refund program is still being implemented by Cagayan 2 Electric Cooperative, Inc. (Cagelco II) as it is not yet finished.
“As of July 2024…, P20 billion refund is only for Cagelco II customers for over-collection of pass-through costs,” she said in a Viber message over the weekend.
Ms. Dimalanta said that the release of the refunds is “scheduled over a period of time.”
Cagelco II is one of the two electric cooperatives organized in the province of Cagayan. Its coverage areas include the northern part of Cagayan, which consists of the municipalities of Aparri, Camalaniugan, Lallo, Abulug, Ballesteros, Gattaran, Allacapan, Lasam, Sta. Ana, and Gonzaga.
The areas also include Buguey, Sta. Teresita, Sta. Praxedes, Sanchez Mira, Pamplona, Claveria, and parts of Sto. Niño. It also provides electricity services to the lone districts of the municipality of Apayao.
As explained by the ERC, pass-through costs refer to the amounts collected from electricity end-users for charges other than the distribution charge, which is the fee for using the facilities that deliver power to consumers.
Earlier this month, the ERC directed the Isabela Electric Cooperative, Inc. to pay a penalty of P2 million for its failure to justify higher charges imposed on customers.
The commission said that the electric cooperative also failed to comply with the submission of fuel cost invoices and documents.
The ERC is rigorously conducting continuous fuel audits among distribution utilities (DUs) to ensure that only reasonable costs are being passed on to consumers. DUs are then reminded to strictly adhere to fuel audit requirements to guarantee that electricity is provided to consumers in the least cost manner,” it said. — Sheldeen Joy Talavera
