Electric coop to refund excess amount collected

Good news for the consumers of Cebu II Electric Cooperative Incorporated II. The Energy Regulatory Commission has recently approved the application of CEBECO II for rate reduction to refund the excess amount it collected from its customers in 2004.

With this, customers of the electric cooperative will have to pay lower electricity bills starting next billing period.

In its five-page decision, ERC said CEBECO II should refund the amount of P6,351,809.29 or equivalent to an average rate of P0.0539 per kilowatt-hour within 12 months starting the next billing period, or until such time that the full amount will have been refunded.

The amount represents the difference between the provisional and final rate reductions for the period October 2004 to April 2005.

On February 21, 2005, ERC has issued a decision approving CEBECO II's reduction in rates for its customers.

However, since the final rate was higher than the one provisionally granted by the commission on its June 9, 2003 order, the electric cooperative was directed to refund its customers the resulting additional reduction by crediting it in their electric bills covering future consumptions for a period of not more than six months from its implementation.

On May 18, 2005, CEBECO II filed a Motion for Reconsideration praying that instead of six months, it be given 24 months to refund the discrepancy between the provisionally approved and the final rate reductions.

ERC issued a decision on the rate unbundling of the electric cooperative on March 26, 2003, which was implemented in its October 2004 billing.

CEBECO II implemented the final rate reduction in its May 2005 billing in accordance with the ERC decision.

However, after a thorough evaluation, ERC determined that the total amount to be refunded by the distribution utility to its customers was computed at P6,351,809.29, representing the difference between the provisional and final rate reductions for the period October 2004 to April 2005.

Franchise area of CEBECO II covers the city of Danao and the municipalities of Bogo, Borbon, Carmen, Compostela, Daanbantayan, Medellin, Catmon, San Remegio, Sogod, Tabogon, Tabuelan and Tuburan. - Wenna A. Berondo