Sunday, March 6, 2022

Ilocos electric co-op ordered: Refund P480 million to customers

By Angelica Yang

The Supreme Court upheld the decision of the Energy Regulatory Commission (ERC) ordering the Ilocos Norte Electric Cooperative, Inc. (INEC) to refund P480 million of over-recoveries from electric billings to its customers. 
    ERC earlier told INEC to return to the customers the amount which covers over-collections between 2004 to 2010, based on  the regulator's computations. 
    The electric cooperative sought to appeal the decision, with the matter reaching the Court of Appeals and High Court.
    “The Supreme Court’s Decision is not only a victory for ERC, but more importantly a victory for the consumers. This shows that our regulatory policies have the consumers’ welfare in mind - that is to protect their interests by ensuring that what was charged and collected from them are but reasonable and accurate rates,” ERC Chairperson and Chief Executive Officer Agnes Devanadera said in an emailed statement shared with reporters on Sunday.
    INEC earlier asked for ERC's approval to refund a total over-recovery of some P8 million covering the years 2004 to 2010. But     ERC found out the value was much higher at P480 million. 
    ERC said its decision was "assailed", and that INEC elevated the matter to the higher courts.
    "The SC... argued, among others, that findings of administrative or regulatory agencies on matters within their technical area of expertise are generally accorded not only respect but finality as such findings are supported by substantial evidence," ERC said, citing the High Court's 21-page decision released on Feb. 3.
    The SC also said the Court of Appeals made the right decision to defer to the ERC's computations in over-recoveries. 
    ERC is a quasi-judicial regulatory body which seeks to create a democratic and transparent environment that balances the interests of energy investors and consumers. 

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