The Philippine Rural Electric Cooperatives Association, Inc. (PHILRECA) is again seeking approval from the Energy Regulatory Commission (ERC) to allow them to avail of the prompt payment discount and invoke the ‘force majeure’ clause in their power supply agreements.
PHILRECA Executive Director and General Manager Janeene Depay-Colingan reiterated this request as she assured the 121 electric cooperatives’ (ECs) compliance with the ERC’s advisories and issuances during the enhanced community quarantine period.
“If no intervention is done, paying these fixed charges will significantly result to a higher generation charge in a consumer’s electricity bill.”
“As part of our advocacy to provide affordable access to electricity, PHILRECA asks the indulgence of the Regulators as we appeal again the issue on Prompt Payment Discounts, minimum energy off-take (MEOT), fix charges, and ‘force majeure’ provisions for the issuance of guidelines or advisory for the benefit of the member-consumer-owners (MCOs),” Depay-Colingan said.
In its advisory dated May 22, the ERC said that “Availment of Prompt Payment Discount may be subjected to negotiation between the contracting parties, and DUs are reminded that benefits from such availment are required to be shared with their customers.”
“We understand that these concerns are covered by contractual obligations as contained in the Power Supply Agreements, but we honestly believe that the Commission has the power to extend considerations for the benefit of the MCOs in this time of crisis similar to the extension of payment due dates,” Depay-Colingan said.
“As we have reiterated before, if no intervention is done, paying these fixed charges due to contract capacity, capital recover fees (CRF), or MEOT will significantly result to a higher generation charge/component in a consumer’s electricity bill,” the PHILRECA official added.
She assured that a favorable action from ERC will also be beneficial for the electricity consumers. “The lower cost of electricity that would result to your positive accommodation will certainly help our electricity end users defray other important expenses during this period,” the group said.