ERC orders power distributors to refund overpayments, universal, FIT-All charges

The Energy Regulatory Commission has ordered power distributors to refund to its customers the overpayments and other charges which are supposed to be suspended amid the implementation of community quarantine measures.

In an advisory dated July 7, released on Thursday, the ERC directed distribution utilities and electric cooperatives “that failed to comply with the ERC’s directives contained in its Advisories...to cause the refund” of feed-in-tariff allowance (FIT-All), universal charge-environmental charge (UC-EC).

The regulatory body issued advisories on April 15 and May 5 suspending the collection of FIT-All charge for billing months of March and April. FIT-All charge is the subsidy paid by electricity consumers for the portion of power supply generated from renewable energy sources.

The ERC, likewise, ordered the suspension until further notice of the collection of UC-EC equivalent to P0.0025 per kilowatt-hour as stated in its May 22 advisory.

The agency earlier said violators of its orders will face administrative sanctions.

Apart from FIT-All and UC-EC, the power industry regulator directed the refund of “overpayments made by consumers arising from monthly billings issued based on estimated consumption and verified against actual meter reading” as well as “overpayments resulting from the non-implementation of the installment payment scheme prescribed by the Commission.”

“The said overpayments shall be accurately and clearly reflected on the billing statement,” the ERC said.

Manila Electric Co. (Meralco), the country’s largest power distributor, admitted in a Senate hearing that it failed to clarify to its customers what is actual and what is the estimated portions of their May billings.

Meralco vowed to correct the lapse and said it will issue personalized letters to its customers explaining the estimated consumptions in March and April or in some cases in May.

The power distributor also reiterated that those who already paid in full the bills that were supposed to be covered by the installment scheme have the option to get a refund and revert to staggered payments.

The ERC said consumers who are entitled to refunds due to overpayments may, in lieu of cash refund, request the distributor to credit the amount to be refunded in the immediate future billings. 

“For this purpose, the DUs / ECs shall provide the necessary communication facility where such requests may be forwarded by the consumers.  Such requests shall be acknowledged by the DU/EC within forty-eight hours upon receipt of the said request,” it said.

“For consumers who already paid in full their monthly billings that fell due during the Enhanced Community Quarantine or Modified Enhanced Community Quarantine that is covered by the mandated installment arrangement, they shall also have the option to seek a refund and avail of the mandated installment payment,” it added.

The ERC also required power distributors to submit a report on overbillings, by month, and the pertinent refund undertaken on or before August 15, 2020.

Meanwhile, distribution utilities or electric cooperatives in Cebu province, particularly in places that are still under the enhanced community quarantine (ECQ), are directed “not to effect any disconnection on account of unpaid ECQ bills of electricity consumers until September 2020.”—AOL, GMA News