THE Energy Regulatory Commission (ERC) has issued 33 Show Cause Orders (SCOs) directing 25 Electric Cooperatives (ECs) and three (3) Private Distribution Utilities (PDUs) to explain why they should not be penalized for failure to provide information on the pass-through fuel cost charged to their customers.

These included the Zambales II Electric Cooperative, Inc. (ZAMECO II), which serves the southern towns of Zambales, and Olongapo Electric Distribution Co. (OEDC), which operates the power distribution system in Olongapo City.

The move comes in the course of the ERC’s ongoing Fuel Audit which aims to verify the accuracy of fuel charges imposed on electricity consumers under the Power Supply Agreements (PSAs).

The 33 SCOs were issued by the ERC against the said Distribution Utilities (DUs) due to their failure to provide the necessary information within the prescribed timelines set by ERC regulations, including Resolution No. 16, Series of 2009, Resolution 24, Series of 2011, as well as the respective ERC approvals of the PSAs.

The ERC emphasized that the submission of reports related to fuel charges is a condition for the grant of authority to charge generation rates under their PSAs.

The Commission highlighted that the DUs’ non-compliance with reportorial requirements undermines the distribution utility’s primary obligation to procure energy supply for its captive consumers in the least cost manner. The DUs in question have been directed to provide verified explanations to the ERC or face potential administrative penalties.

The Fuel Audit initiated by the ERC last year is part of broader efforts to enhance transparency and accountability in the energy industry. By scrutinizing fuel charges and ensuring their accuracy, the ERC aims to safeguard the rights and interests of electricity consumers, preventing the undue burden of unjustified costs.

The subject ECs and PDUs are as follows:

Electric Cooperatives: 1. Abra Electric Cooperative, Inc. (ABRECO) 2. Aklan Electric Cooperative, Inc. (AKELCO) 3. Albay Electric Cooperative, Inc. (ALECO) 4. Camiguin Electric Cooperative, Inc.(CAMELCO) 5. Capiz Electric Cooperative, Inc.(CAPELCO) 6. Camarines Sur II Electric Cooperative, Inc. (CASURECO II) 7. Cebu I Electric Cooperative, Inc. (CEBECO I) 8. Central Negros Electric Cooperative, Inc. (CENECO) 9. North Cotabato Electric Cooperative, Inc. (COTELCO) 10. Davao Norte Davao Oriental Electric Cooperative, Inc. (DORECO) 11. Don Orestes Romualdez Electric Cooperative, Inc. (DORELCO) 12. Iloilo III Electric Cooperative, Inc. (ILECO III) 13. Kalinga Apayao Electric Cooperative, Inc. (KAELCO) 14. La Union Electric Cooperative, Inc. (LUELCO) 15. Northern Davao Electric Cooperative, Inc. (NORDECO) 16. Oriental Mindoro Electric Cooperative, Inc. (ORMECO) 17. Pampanga III Electric Cooperative, Inc. (PELCO III) 18. Pampanga Rural Electric Cooperative, Inc. (PRESCO) 19. Surigao Sur II Electric Cooperative, Inc. (SURSECO II) 20. Zambales II Electric Cooperative, Inc. (ZAMECO II).

Electric Cooperatives with 2 SCOs for different PSAs: 21. Ilocos Sur Electric Cooperative, Inc. (ISECO) 22. Isabela II Electric Cooperative, Inc. (ISELCO) 23. Lanao Del Norte Electric Cooperative, Inc. (LANECO) 24. Pangasinan III Electric Cooperative, Inc. (PANELCO III) 25. Zamboanga Sur I Electric Cooperative, Inc. (ZAMSURECO I).

Private Distribution Utilities: 26. Iligan Light & Power, Inc. (ILPI) 27. Mactan Electric Company, Inc. (MECO) 28. Olongapo Electric Distribution Co. (OEDC).