The Energy Regulatory Commission (ERC) issued show-cause orders on 25 electric cooperatives (ECs) and three private distribution utilities (DUs), directing them to explain why they should not be penalized for failure to provide information on the pass-through fuel cost charged to their customers.
The regulatory body is conducting a fuel audit which aims to verify the accuracy of fuel charges imposed on electricity consumers under power supply agreements (PSAs).
ERC added the ECs and DUs failed to provide the necessary information within the prescribed timelines set by regulations, including Resolution No. 16, Series of 2009, Resolution 24, Series of 2011, as well as the respective PSA approvals.
The ERC the submission of reports related to fuel charges is a condition to granting the authority to charge generation rates under their PSAs.
It added DUs’ non-compliance with reportorial requirements undermines their primary obligation to procure energy supply for captive consumers in the least cost manner.
The regulatory body warned the DUs in question may face potential administrative penalties unless they can provide verified explanations.
ERC said the fuel audit it initiated last year is part of efforts to enhance transparency and accountability in the energy industry by scrutinizing fuel charges and ensuring their accuracy “to safeguard the rights and interests of electricity consumers, preventing the undue burden of unjustified costs.”
ECs and DUs that received 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.
Meanwhile, Ilocos Sur Electric Cooperative; Isabela II Electric Cooperative; Lanao Del Norte Electric Cooperative; Pangasinan III Electric Cooperative; and Zamboanga Sur I Electric Cooperative received two show-cause orders each for different PSAs.
