GM Zambales confident that ERC will favor Paleco’s P36M “under recovery” claim

ERC hears today Paleco’s appeal to claim P36M “under recoveries”

Palawan Electric Cooperative General Manager Ric Zambales is confident that the Energy Regulatory Commission (ERC) will favor their request before the quasi-judicial body to claim the more than P36M “under recoveries” from September 2007 to May 2014 which was supposed to be charged to the member-consumers.


This statement came after the ERC jurisdictional hearing, expository presentation, pre-trial conference and evidentiary hearing on Tuesday, February 23 at the  PALECO Main office.


Base from the appeal, PALECO wants to retrieve the under recoveries by charging the consumers the a rate of 0.047138004/kWh for three years, from 2016 to 2018. Under recoveries will be spent as payment to loans allocated for construction of sub-stations and for procurement of other equipment to improve operation.


Zambales explained that the under recovery came out because Paleco charged lower amount compared to the supposed  supply charge rate because of the implementation of Reinstated Prompt Payment Discount (PPD).


Despite conviction, Zambales admits that their appeal will still go through an evaluation of the ERC base from their submitted reports and other necessary documents. “Ito naman ay in compliance sa kanilang ruling dahil nga over and under, kailangang i-apply ngayon doon sa amount ‘yon siguro ang posibleng magbago pa o kaya’y puwede pang palawigin ng ERC upang mas magaan pa ang pagbabayad,” he added.


Zambales said that although there will be an increase on the rate it will not affect much since they will be charging only around four centavos per kilowatt hour of consumption.


Atty. Leah Banagui, legal counsel of ERC said that the decision will still depend on the result of the evaluation of  reports like the monthly financial reports since June 2014. Paleco was given 15 days to complete all the necessary documents for ERC to come up with a final decision.

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