THE Energy Regulatory Commission (ERC) failed to collect P12 million in supervision and regulation fees from 23 electric cooperatives and distribution utilities in 2012, according to the Commission on Audit (COA).
State auditors lamented the laxity of the ERC in imposing a resolution allowing it to collect supervision and regulation fees (SRFs) from private distribution utilities and electric cooperatives. Under ERC Resolution 21 which was issued in 2007, the commission should collect P1 for every P100 capital stock.
If no shares have been issued, it can collect a five-centavo fee for each P100 or a fraction of the capital invested “whichever is higher.”
However, COA said that a review of the ERC’s SRF showed that the agency has not collected regulation fees.
About 21 electric cooperatives and two distribution utilities owe the ERC P12.85 million last year.
“The failure of the accounting section [of the ERC]to impose penalties understated the accounts receivable,” the audit report read.
State accountants said the ERC should “exert extra efforts” in collecting revenues.