Bacolod City – Councilor Wilson Gamboa Jr. met with the officers of Negros Electric and Power Corporation (Negros Power) recently, to address the monthly collection of the Reinvestment Fund for Sustainable Capital Expenditures (RFSC), which was deemed illegal under the Energy Regulatory Commission (ERC) Resolution No. 20, Series of 2009.
Gamboa met with Negros Power’s Officers, Leomel Tambanillo, AVP for Rural Electrification, Christian Villena, Manager for Corporate Sourcing and Regulatory Affair, Maricel Pe, AVP Customer Care and Business Development, and Mervin Dalian, head of Network Development and Operations.
He earlier reported that the collection could generate P300-million annually for Negros Power on RSFC alone, based on primary power consumption only, but he was assured that the collection will cease in October 2025, after the expiration of the one-year grant interim relief from the date of the receipt of “an unpublished ERC order – ERC Case No. 2024-037 MC promulgated October 16, 2024.”
The RFSC, created under the said ERC Resolution number 20 series of 2009, allows electric cooperatives’ (ECs) to collect capital contributions from their members-consumers to fund ERC approved capital expenditure (CAPEX) plan; Negros Power is not an EC but a private stock corporation registered under the Securities and Exchange Commission (SEC) and, therefore, the collection of the RFSC charges raised legal and ethical question, Gamboa said.
In their September 17, meeting, however, officers of the Negros Power presented the “unpublished ERC order, ERC Case No. 2024-037 MC promulgated October 16, 2024,” which granted them Provisional Authority/Interim Relief to collect the final approved Distribution, Supply, and Metering rate of CENECO “with the inclusion of the RFSC.”
The said order further states that “the grant of the (this) interim relief is for a period of one (1) year from the date of receipt,” which was October 16, 2024.
Gamboa pointed out that said ERC order was not posted in the Negros Power website. What was posted is ERC order – ERC Case No. 2024-037 MC promulgated September 24, 2024” (not “October 16, 2024” promulgation) – which does not explicitly authorize Negros Power to collect the RFSC, nor has Negros Power been granted a Certificate of Public Convenience and Necessity (CPCN), or an Interim Relief or Provisional Authority from the ERC allowing collection of RFSC.
Under Section 13, letter “J”, of this published September 24, 2024 promulgation, however, contains a description that reads, “Statement on Proposed Interim tariff showing all rates, deposits and charges. Nowhere is the RSFC included in this order but in the unpublished October 16, 2024 promulgation, the RSFC was “included,” he said.
Nevertheless, with this “October 16, 2024 promulgation”, Gamboa obtained the assurance that Negros Power will cease collecting the RFSC beginning October 2025, “as it files an application for the approval of its new distribution rates.”
Gamboa, currently the chairman of the Sangguniang Panlungsod (SP) Committee on Human Rights, stood firm on his position on ethical and legal grounds, nevertheless, he
lauded Negros Power for its willingness to listen, adding, that Negros Power’s pledge was a positive step toward protecting the rights of consumers and ensuring transparency.
He said that Negros Power’s move to end the RFSC collection is a big help for the people of Bacolod and cities and municipalities under the franchise area of Negros Power but his office will remain vigilant, continue monitoring compliance and coordinating both with Negros Power and ERC to make sure that promises are kept and that the interests of consumers always come first. (news by NP PIO)