The Energy Regulatory Commission will conduct a public consultation on the application of Central Negros Electric Cooperative to be allowed to refund/collect over/under recoveries, at the CENECO building at Mabini Street, Bacolod City, 9 a.m. Friday.
CENECO had filed an application for approval of over/under recoveries in the implementation of automatic cost adjustments and true-up mechanisms and corresponding confirmation process pursuant to ERC Resolution No. 16, Series of 2009, as amended by Resolution No. 21, Series of 2010 on March 26.
Sulpicio Lagarde Jr. CENECO general manager, said the over/under recovery accounts are both positive and negative variances in CENECO’s power cost, sales and pass-on charges spawned by the monthly costing mismatch in generation, transmission, systems loss, lifeline, inter-class cross subsidy and prompt payment discount reinstatement.
Lagarde said ERC passed Resolution No. 16 in 2009 amended by Resolution No. 21 in 2010, requiring electric cooperatives to file their over/under recoveries using the true-up mechanism to validate and confirm its strict adherence to their formula.
Upon the determination of ERC that the EC had implemented and collected a tariff rate above the prescribed level, it will order the EC to refund the “over-recovery” to the consumer, he said.
The EC’s that had collected a tariff below the prescribed level will be allowed to recover its “under-recoveries,” he added.
Lagarde said the collection of under-recoveries cannot be implemented without the approval of ERC.
Lagarde said “As indicated in our 2011 financial statement, your cooperative is surviving on a shoestring budget and operating at a loss. This has a direct effect on the quality, reliability and efficiency of our services.”
Lagarde said “New investments bring about employment opportunities, salaries and wages that trigger robust and vibrant socio-economic activity not only in our coverage area, but in the entire Negros Island as well.”*CGS