11 electric coops not remitting collections to gov't – DOF
Published Aug 11, 2019 12:00 am
By Chino S. Leyco
A number of electric cooperatives are not remitting to Power Sector Assets and Liabilities Management Corp. (PSALM) the administrative charges they collected from consumers, the Department of Finance (DOF) revealed.
In a statement, the DOF said over the weekend that PSALM discovered about P238.3 million in universal charges (UC) that consumers paid to 11 electric cooperatives, but were not remitted to the government, through the state-run firm.
The UC is a non-by passable charge collected from electricity consumers on a monthly basis by distribution utilities. The revenues from this are used for stranded debts, stranded contract costs of the National Power Corp. and other mandated purposes under the Electric Power Industry Reform Act (EPIRA) of 2001.
After the discovery of the unremitted UC, PSALM sent out final demand letters to the cooperatives with a stern warning that aside from being liable for interest charges, they will also face civil, administrative and criminal charges.
Under the EPIRA law, collected UCs must be remitted to PSALM as the administrator on or before the 15th day of the succeeding month together with the required reports.
In the demand letters, PSALM reminded delinquent cooperatives that every month of non-remittance is one count of violation of the EPIRA, which is punishable by fines and penalties of up to P50 million.
In addition, the directors and officers that allowed such violation by the cooperatives may be liable for imprisonment of up to two years and/or fine of double the amount of the damages caused.
“Patent refusal to comply with the EPIRA may further expose officers to a fine of up to P5 million and/or imprisonment of up to six years,” PSALM said.
“In addition to these consequences in the EPIRA, PSALM also stressed that non-remittance of UC is tantamount to estafa by misappropriation under the Revised Penal Code, and thus punishable by imprisonment of up to 20 years,” it added.
Irene Joy Besido Garcia, PSALM president and chief executive said they will continue to “relentlessly pursue” all efforts to collect what is legally due to it, adding they will not allow delinquent cooperatives to get away with illegal use and misappropriation of the UC collections.
Camarines Sur III Electric Cooperative, Inc. tops the list of the 11 delinquents with the highest unremitted UC collections amounting to P66.281 million, followed by Albay Electric Cooperative, Inc. with P40.6 million, while Abra Electric Cooperative, Inc. owes PSALM about P36.886 million.
PSALM also called out cooperatives that not only failed to remit UC collections, but also refused to submit the required monthly collection reports to PSALM, a violation of the guidelines by the Energy Regulatory Commission (ERC).
Those cooperatives include Maguindanao Electric Cooperative with at least P26.28 million, Ticao Electric Cooperative with at least P9.421 million, Lanao del Sur Electric Cooperative with at least P8.685 million, and Siasi Electric Cooperative with at least P2.764 million.
Other cooperatives that received demand letters include Basilan Electric Cooperative with P31.531 million, Cotabato Electric Cooperative with P7.428 million, Masbate Electric Cooperative with P4.917 million and Romblon Electric Cooperative with P3.456 million.
Copies of the demand letters were furnished to Finance Secretary and PSALM Chairman Carlos Dominguez III, as well as Energy Secretary Alfonso Cusi, who is the vice-chair of the said Board. The National Electrification Administration (NEA) and the ERC were also provided copies of PSALM’s demand letters.
In a statement, the DOF said over the weekend that PSALM discovered about P238.3 million in universal charges (UC) that consumers paid to 11 electric cooperatives, but were not remitted to the government, through the state-run firm.
The UC is a non-by passable charge collected from electricity consumers on a monthly basis by distribution utilities. The revenues from this are used for stranded debts, stranded contract costs of the National Power Corp. and other mandated purposes under the Electric Power Industry Reform Act (EPIRA) of 2001.
After the discovery of the unremitted UC, PSALM sent out final demand letters to the cooperatives with a stern warning that aside from being liable for interest charges, they will also face civil, administrative and criminal charges.
Under the EPIRA law, collected UCs must be remitted to PSALM as the administrator on or before the 15th day of the succeeding month together with the required reports.
In the demand letters, PSALM reminded delinquent cooperatives that every month of non-remittance is one count of violation of the EPIRA, which is punishable by fines and penalties of up to P50 million.
In addition, the directors and officers that allowed such violation by the cooperatives may be liable for imprisonment of up to two years and/or fine of double the amount of the damages caused.
“Patent refusal to comply with the EPIRA may further expose officers to a fine of up to P5 million and/or imprisonment of up to six years,” PSALM said.
“In addition to these consequences in the EPIRA, PSALM also stressed that non-remittance of UC is tantamount to estafa by misappropriation under the Revised Penal Code, and thus punishable by imprisonment of up to 20 years,” it added.
Irene Joy Besido Garcia, PSALM president and chief executive said they will continue to “relentlessly pursue” all efforts to collect what is legally due to it, adding they will not allow delinquent cooperatives to get away with illegal use and misappropriation of the UC collections.
Camarines Sur III Electric Cooperative, Inc. tops the list of the 11 delinquents with the highest unremitted UC collections amounting to P66.281 million, followed by Albay Electric Cooperative, Inc. with P40.6 million, while Abra Electric Cooperative, Inc. owes PSALM about P36.886 million.
PSALM also called out cooperatives that not only failed to remit UC collections, but also refused to submit the required monthly collection reports to PSALM, a violation of the guidelines by the Energy Regulatory Commission (ERC).
Those cooperatives include Maguindanao Electric Cooperative with at least P26.28 million, Ticao Electric Cooperative with at least P9.421 million, Lanao del Sur Electric Cooperative with at least P8.685 million, and Siasi Electric Cooperative with at least P2.764 million.
Other cooperatives that received demand letters include Basilan Electric Cooperative with P31.531 million, Cotabato Electric Cooperative with P7.428 million, Masbate Electric Cooperative with P4.917 million and Romblon Electric Cooperative with P3.456 million.
Copies of the demand letters were furnished to Finance Secretary and PSALM Chairman Carlos Dominguez III, as well as Energy Secretary Alfonso Cusi, who is the vice-chair of the said Board. The National Electrification Administration (NEA) and the ERC were also provided copies of PSALM’s demand letters.