Power consumers to get P180M refund

DAVAO CITY—A power generating firm in Mindanao is returning at least P180 million paid by consumers in excess of what the firm was authorized to collect.

Officials of Therma Marine (TM), a power generating firm owned by the Aboitiz group of companies, said the refund came after the Energy Regulatory Commission (ERC) issued an order reducing the amount that TM could collect from consumers under a provisional authority to increase rates that the ERC issued in 2011.

“The refund will represent adjustments in rates for power delivered in 2011,” TM president and chief operating officer Jovy Batiquin said.

The firm, said Batiquin, is returning at least P180 million to consumers. The refund, he said, would be reflected in the December to January billing and be completed in six billings.

No error

Consumers who will get refunds are those in areas serviced by the Davao Light and Power Co., Davao del Norte Electric Coop. (Daneco), Davao del Sur Electric Coop. (Dasureco) and Davao Oriental Electric Coop. (Doreco) in Southern Mindanao.

Also to get refunds are consumers serviced by electric

cooperatives in the two Agusan and Surigao provinces, South Cotabato, Bukidnon, Camiguin, north and south Cotabato, the two Misamis provinces, and in Zamboanga del Norte and Zamboanga del Sur.

Batiquin said TM received the ERC order to refund consumers on Jan. 3. He said, however, that TM did not err in collecting the increased rate in 2011.

Urgent need

“Since there was an immediate need for power in Mindanao in 2011, Therma Marine started delivering power to the electric cooperatives and distribution utilities as soon as possible, pegging our rates on the provisional authority granted to us by the ERC,” said Batiquin.

“The provisional authority was issued while ERC assessed our proposed rate structure,” he said.

Batiquin said when ERC decided that the final rate should be lower than what had been approved, TM immediately agreed to issue refunds “without any delay.”

TM operates oil-fired power barges in Maco, Compostela Valley and Nasipit, Agusan del Norte. The two barges have a combined capacity of 200 megawatts.

Bayan Muna Representatives Neri Colmenares and Carlos Isagani Zarate said they are filing a petition at the Supreme Court to stop the collection of increased generation cost by power utilities.

Concoction

The additional generation charges are being collected due to the supposed need for additional power contracts with independent power producers amid maintenance work on cheaper sources of electricity.

The Manila Electric Co. (Meralco) is among the utilities that have used this line, which Colmenares and Zarate labeled as a concoction to gain more profit.

“Meralco and the IPPs (independent power producers) colluded to create artificial power shortage through simultaneous power plant shutdowns. The real problem is the greed for profit of these power generators and suppliers,” Colmenares said in a statement on Monday.

“We have to be watchful of the schemes and ploys of this power cartel as it appears that they will take advantage of consumers through any means possible,” Zarate said. Judy Quiros and Allan Nawal, Inquirer Mindanao