ELECTRIC CO-OPS SEEK CLEARER DIRECTIVE ON PROMPT PAYMENT DISCOUNTS

Electric cooperatives are pressing for the Energy Regulatory Commission to issue a more definitive directive that will allow them to avail themselves of the prompt payment discount and invoke the force majeure clause in their power supply agreements.

According to the Philippine Rural Electric Cooperatives Association (Philreca), doing so would help avoid a “higher generation charge/component 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, fix charges and ‘force majeure’ provisions for the issuance of guidelines or advisory for the benefit of the member-consumer-owners,” Philreca executive director and general manager Janeene Depay-colingan said in a statement.

Depay- Colingan also said the 121 electric cooperatives grouped under Phireca had complied with the ERC’S advisories and issuances during the enhanced community quarantine period.

She noted that, in an advisory dated May 22, the ERC had said that “availment of prompt payment discount may be subjected to negotiation between the contracting parties, and distribution utilities 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 (ERC) 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, or MEOT will significantly result in a higher generation charge/component in a consumer’s electricity bill,” she added.

She said the lower cost of electricity that would be brought about by the ERC’S favorable action would help electricity consumers defray other important expenses during quarantine.