COA tells ERC to collect P12-M fees from electric coops



The Energy Regulatory Commission (ERC) failed to collect a P12-million in fees from  23 electric cooperatives and distribution utilities in 2012, according to the Commission on Audit (COA).


State auditors said that the “understatement of accounts receivable” of ERC stemmed from its  laxity in imposing its own resolution, which authorizes the energy body from collection supervision and regulation fees (SRFs).


According to the ERC Resolution 21 of 2007, the can charge private distribution utilities and electric cooperatives P1 for each on P100 of the capital stock subscribed or paid.

If no shares have been issued, a five-centavo fee for each P100 or fraction of the capital invested or of the property and equipment “whichever is higher.”


However, review of the summary of unpaid SRF showed that the ERC has been remiss with its duties.

A total of 21 electric cooperatives and two distribution utilities, all which are unnamed in the report, failed to pay ERC P12.85 million despite the resolution.

The electric cooperatives did not pay ERC P2.14 million, while the two bigger utilities did not pay ERC P10.7 million in 2012.

“The failure of the accounting section [of the ERC]to impose penalties understated the accounts receivable,” the audit report read, referring to additional government revenue that the state may have gotten from the 23 erring electric industries.

State accountants wanted ERC to “exert extra efforts” in collecting this revenue, to which the ERC replied that they will record this in their books on March 2013.



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