MANILA, Philippines — At least 11 electric cooperatives (ECs) allegedly failed to remit P238.3 million in universal charges (UC) to the Power Sector Assets and Liabilities Management Corp. (PSALM), the Department of Finance (DOF) said over the weekend.
In a statement, the DOF said PSALM has sent final demand letters to 11 ECs for collecting P238.3 million in UC from their consumers, but not remitting the said amount to PSALM as the administrator of the UC.
“Non-remittance of UC collections to PSALM is fraud perpetrated against the consumers who paid for the UC and against the government that is mandated to use the UC in accordance with EPIRA (Electric Power Industry Reform Act of 2001),” PSALM president and chief executive officer Irene Joy Besido Garcia said.
“PSALM will continue to relentlessly pursue all efforts to collect what is legally due to it. It will not allow delinquent coops to get away with illegal use and misappropriation of the UC collections,” she said.
The UC is a non-by passable charge collected on a monthly basis by distribution utilities, including cooperatives, for the recovery of stranded debts, stranded contract costs of the National Power Corp. and other mandated purposes under the EPIRA Law.
UC collections must be remitted to PSALM on or before the 15th day of the succeeding month together with the required reports.
According to the DOF, Camarines Sur III Electric Cooperative Inc. topped the list of delinquent cooperatives, with unremitted charges amounting to P66.28 million.
The DOF said it was followed by the Albay Electric Cooperative Inc., with unremitted UC collections amounting to P40.6 million, and the Abra Electric Cooperative Inc., with unremitted UC collections reaching P36.89 million.
“PSALM also called out cooperatives that not only failed to remit UC collections, but also refused to submit the required monthly UC collection reports to PSALM. Non-submission of such reports is a violation of the UC guidelines issued by the ERC (Energy Regulatory Commission),” the DOF said.
The agency named these as the Maguindanao Electric Cooperative Inc., with unremitted UC collections of at least P26.28 million; Ticao Electric Cooperative, with at least P9.42 million; Lanao del Sur Electric Cooperative Inc., with at least P8.69 million, and Siasi Electric Cooperative, with at least P2.76 million.
The DOF said the amounts may still be higher as the current assessments are only based on the submitted collection reports.
Other cooperatives who received demand letters were the Basilan Electric Cooperative Inc. (with P31.53 million in unremitted UC collections), Cotabato Electric Cooperative Inc.-PPALMA (P7.43 million), Masbate Electric Cooperative Inc. (P4.92 million), and Romblon Electric Cooperative Inc. (P3.46 million), according to the DOF.
Garcia reminded delinquent cooperatives that every month of non-remittance of the UC is one count of violation against the EPIRA, which is punishable by fines and penalties of up to P50 million.
In addition, she said their directors and officers who violate the law may be liable for imprisonment and fines.
Garcia also stressed that non-remittance of UC is tantamount to estafa and thus punishable by imprisonment of up to 20 years.