Power

PEMC ordered to refund P1B in overcollections

The Energy Regulatory Commission has ordered the Philippine Electricity Market Corp. (PEMC) to refund its customers for overcollections in market transaction fees (MTF) from 2016 and 2017.

The overcollections, which reportedly amount to over P1 billion, must be settled over a period of one year beginning on the next billing month.

ERC chairperson and CEO Agnes Devanadera said the agency determined the overcollection by getting the variance between the MTF collected in 2016 and 2017, and the ERC-approved budget of PEMC for the same period.

In arriving at its decision, ERC considered the nature of PEMC as a government-owned and controlled corporation, the relevance and reasonableness of the actual utilization of each cost component, the use of actual proof of expenditures submitted by PEMC to verify its utilization and the comparison of the expenditures of each cost item with industry standards, as well as existing rules and regulations provided for GOCCs.

ERC has directed PEMC to reflect the said refund as a separate line item in the WESM monthly billing statement, and to correspondingly implement the adjusted MTF which should be net of the amount to be refunded.

PEMC was also directed to submit to the ERC its plan of action for the implementation of the refund scheme and the corresponding adjustment to the MTF within 10 days upon receipt of the decision.

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