Pampanga power firms deny rates overpricing

Wednesday, September 7, 2011
CITY OF SAN FERNANDO — Officials of the three power firms on Wednesday denied the alleged millions of pesos in “undisclosed over collection.”
National Association of Electricity Consumers for Reforms Inc. (Nasecore) president Pete Ilagan on Tuesday presented to executives of the Pampanga Chamber of Commerce and Industry, Inc. (Pamcham) and media, statistics and letters to the Energy Regulatory Commission (ERC) of power firms with over collections from 2004 to 2008, contrary to their respective approved annual revenue requirements.
The said power firms are San Fernando Electric Light and Power Company Inc. (Sfelapco), Pampanga 1 Electric Cooperative (Pelco 1) and Angeles Electric Corporation (AEC).
Nasecore has urged the ERC to immediately conduct a regulatory audit of the three firms to stop the alleged over collections, and ask the power distributors to refund customers or make the necessary rate adjustments.
Based on Nasecor’s findings, Sfelapco has an over collection of P1,612,254,221 from 2004 to 2009; Pelco 1 with P140,893,592 from 2004 to 2008; and AEC with P528,977,139 from 2005 to 2008.
But Irwin Nucum, Sfelapco Corporate Communications Officer said on Wednesday: “We completely deny the allegation, since any single centavo increase in our rates undergoes a series of ERC hearings. We can only implement any increase with our rates once duly approved by ERC. Thus, Nasecore’s allegation is a direct insult to the integrity, performance and efficiency of ERC, which regulates all distribution utilities like Sfelapco.”
“For the record, Sfelapco has not been slapped of any charge of over collection or overpricing of rates. We will never sacrifice our honor in favor of just and unreasonable profit. Sfelapco only started implementing its unbundled rates with our March 2006 billing period,” he said.
“Nasecore needs to revisit its computation, which includes fiscal years 2004 and 2005. It’s just unfortunate that everybody else was furnished with a copy by Nasecore except Sfelapco, the subject of their complaint before the ERC. Nasecore already resorted to trial by publicity before giving Sfelapco the opportunity to answer their allegations,” Nucum added.
Confirmation, validation
Meanwhile, Ofelia Quizon, Pelco 1 finance manager said there is a need to confirm and validate figures on the Nasecor letter.
“They (ERC) would have to validate and confirm the figures. We really do not know where Nasecore got the figures and if they are accurate based on records. Our annual revenue requirement based on the ERC’s unbundling decision of November 15, 2002 under Case No. 2001-908 is P304,502,575 and not P74,167,340 as stated in their document. The baseline of our rates is per kilowatt hour at an average of P4.81 per kilowatt hour. The final decision in unbundling is the converted price per kilowatt hour,” Quizon said.
“We are denying the allegations of Nasecore because we are charging based on approved ERC rates. Besides, we at Pelco 1 are very transparent since we disclose everything to our member-consumers during our annual meeting with them and they all know where every centavo goes like improved services for them, lower rates and other necessities for quality distribution. Based on records, we could say Nasecore has no right to accuse us of over collecting and over charging our consumers,” she added.
Absurd
In earlier statements, AEC has branded as “absurd” the allegations made by Nasecore that the electric power firm has overcharged its customers by more than P500 million from the period of 2005 to 2008.
Myra Rivera, head of the AEC Customer Service Department, clarified that while the unbundled rates of AEC, under ERC Case Number 2001-894, were approved in 2004, the implementation was deferred until July 2008, pending the resolution of a motion for reconsideration that was filed by the utility with the commission.
“It is therefore impossible for AEC to have overcharged its consumers because its distribution rates were never changed during the said period,” Rivera said.
In fact, she revealed, prior to the 2008 implementation of its unbundled rates, AEC distribution rates never increased for 12 years. The firm has remained under the return-on-rate basis (RORB) methodology since 1996 until 2008.
The unbundling of the rates of distribution utilities is required under the Epira law (Electric Power Industry Reform Act) as a prerequisite for open access and retail competition.
“This and any information about the claims of the group may be verified with the ERC, the industry’s regulatory body which closely oversees the operations of distribution utilities in the country and ensures the welfare of electricity consumers,” Rivera said.
Neutral
Pamcham vice-chairman Rene Romero, meanwhile, stressed that the chamber remains neutral on the complaints of Nasecore to the ERC.
“While we believe in the integrity of Nasecore—a watchdog which has been our partner in the advocacy of consumer rights and protection since 2002—we remain neutral on the issue. We were alarmed by the disclosures of Nasecore, and since it is our mandate to protect our members and Kapampangan consumers in general, we need to involve ourselves in clearing up gray areas. But we are not accusing or charging anyone. We do not want to be blamed by both business people or consumers na alam nap ala naming na may ganitong issue, eh hindi kami gumalaw,” he told Sun.Star Pampanga.
“What we really want to happen is for all parties to present their respective reports and data. They must prove to consumers their respective sides. Then we can compare notes and probably reach a settlement. The ultimate goal here is the welfare of every consumer,” Romero said.
Published in the Sun.Star Pampanga newspaper on September 08, 2011.

Source: http://www.sunstar.com.ph/pampanga/local-news/2011/09/07/pampanga-power-firms-deny-rates-overpricing-177989

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