ERC orders NV power co-op to refund P73 M to consumers

BAYOMBONG, Nueva Vizcaya — The Energy Regulatory Commission (ERC) has ordered a local electric cooperative to refund a total of P73 million it had charged its consumers under the now-scrapped purchase power adjustment (PPA) scheme for almost a decade.

Based on the ERC order, which is supposed to take effect this month, the Nueva Vizcaya Electric Cooperative (Nuvelco) should refund its consumers P73,263,111, representing its PPA collections from February 1996 to July 2004.

In its 10-page order dated last March, the ERC, chaired by Rodolfo Albano Jr., directed Nuvelco to refund each of its member-consumers P0.1992 per kilowatt-hour until the amount is fully paid.

This means that for every 10 kilowatt-hours consumed, each member gets a refund of P1.992.

Novo Vizcayanos learned about the ERC order during a public hearing last Friday on Nuvelco’s proposed rate hike and its plan to avail itself of a multimillion-peso loan to enhance its service capability.

"Were it not for the public hearing, the member-consumers would have been totally unaware that there is an ERC order entitling them to a refund for the cooperative’s overcharging," said engineer Peter Dumelod, one of those who oppose the proposed power rate hike.

Engineer Reynaldo Agub, one of the convenors of an emerging consumers’ watchdog in the province, scored Nuvelco for what it described as its deliberate failure to inform its member-consumers about the ERC order as well as its plan to increase monthly billings.

"I do not believe that Nuvelco is deliberately withholding this information from the public. But why the delay and why was the public only informed now?" he said.

Lloyd Valdez, chairman of Nuvelco’s board of directors, said they have filed a motion for reconsideration with the ERC, explaining that the cooperative cannot afford to carry out the order given its present financial capabilities.

"We, at Nuvelco, had followed the computation made by the former Energy Regulatory Board (ERB). However, when the ERB was changed into the ERC, the computation was revised which resulted in the so-called overcharging," he said.

Valdez, however, said that if the ERC would stick to its order despite Nuvelco’s appeal, they have no recourse but to make refunds.

"We do not have any recourse but to comply with the order. We only hope that the ERC will (give) us a leeway in returning the said amount over a span of years," he said.

Nuvelco has been receiving flak from its consumers for poor service and its inconsistent policy on power disconnections. — Charlie Lagasca