Pampanga power firm to appeal penalty, refund order of ERC
Lineworkers fix electrical posts of San Fernando Electric Light and Power Company (Sfelapco) in this photo taken on Sept. 25, 2022. Sfelapco was recently ordered by the Energy Regulatory Commission to immediately refund the “unauthorized” charges it imposed on its customers from 2013 to 2022 amounting to P654,397,381. (SFELAPCO FACEBOOK PAGE)
MABALACAT CITY, Pampanga–The San Fernando Electric Light and Power Company Inc. (Sfelapco) said it would appeal the decision of the Energy Regulatory Commission (ERC) that ordered the power firm to pay P21.6 million in fines and refund its consumers P654 million in “unauthorized” charges.
Irwin Nucum, Sfelapco’s corporate communications officer, told the Inquirer in a text message recently that the power firm is entitled to seek legal remedies to present their side and as part of due process.
“While we fully respect the decision of the [ERC], we shall also explore all avenues and options available to us,” he added.
On March 3, the ERC fined the power distribution company for reportedly violating provisions of the Philippine Grid and Distribution Codes when it included in the consumers’ power bill generation charges from its “ineligible” power supply contract with the Aboitiz Power Renewables Inc. (Apri) from January 2014 to December 2022.
It said that Sfelapco collected generation charges during that period despite its failure to secure approval from the commission.
The regulator also ordered Sfelapco to immediately refund the “unauthorized” charges it imposed on its customers from January 2013 to December 2022, amounting to P654,397,381.
‘Violations’
It said the power distribution company had imposed invalid charges on its customers aside from the actual kilowatt-hours (kWh) energy delivered by the Apri in violation of the governing rules on automatic cost adjustment and true-up mechanisms corresponding to confirmation process for distribution utilities, also known as the OU Rules.
The invalid charges included Apri’s line rental charges, site-specific loss adjustment, Wholesale Electricity Spot Market (Wesm) net settlement surplus, and Wesm charges, the ERC said.
In January this year, Sfelapco started charging higher generation rates to its customers in the City of San Fernando and parts of Floridablanca and Bacolor towns after its power service agreement with Apri expired in December 2022.
The power distribution company charged its customers around P8.85 per kWh, including the 12 percent value-added tax, up from only P4.43 last December.
The generation charge increased after Sfelapco entered into a power supply agreement with GN Power Mariveles (GNPM), which operates a coal-fired power plant in nearby Bataan province.
Apri generates electricity through its two geothermal plants in Laguna and Albay provinces. It belongs to the Aboitiz Group of companies, while GNPM is a partnership between AboitizPower and Ayala Group’s AC Energy Holdings. Inc.
While appealing the ERC decision, Nucum said Sfelapco would “continue to provide one of the cheapest power rates in our franchise areas, in the service of our fellow Kapampangans.” INQ
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