DELINQUENT PAYMENTS. A NORECO II post on social media with regard to its scheduled disconnection advisories in its service areas. The Energy Regulatory Commission on Sept. 2, 2022, ordered the electric cooperative in Negros Oriental to stop in its collection of 10-percent interest rate for delayed payment of bills. (Infographic from NORECO II's Facebook page)
DUMAGUETE CITY – The Energy Regulatory Commission (ERC) has ordered the Negros Oriental II Electric Cooperative (NORECO II) to immediately stop imposing and collecting a 10 percent interest for delinquent bill payments.
The ERC order, dated Sept. 2, 2022 and signed by Commissioner Floresinda Baldo-Digal, noted that the electric cooperative “has been imposing penalty charges for non-payment of electricity bills at the rate of 10 percent interest rate”.
It said NORECO II had violated Section 23 of the Electric Power Industry Reform Act (EPIRA) Law.
While Sec. 23 “allows distribution utilities to impose and collect distribution wheeling charges and other charges necessary for the conduct of its business, such charges are subject to prior approval of the Commission”.
The ERC order said there are no records at their agency of approval or even applications for “Other Charges Rate for late payment”.
The electric cooperative received on Monday a copy of the order but declined to comment, saying it carried a “confidentiality clause” with it, Sharon Araula, NORECO II information officer, told the Philippine News Agency on Tuesday.
NORECO II, in a statement posted on its Facebook page, said this was a “regulatory process” and the firm will “wait for the resolution of the issues before other details can be shared”.
The ERC directed NORECO II to submit within 15 days of receipt of the order a “verified explanation and show cause why no administrative penalty should be imposed upon it” for the 10 percent interest in overdue payment of electric bills.
The order came following a petition submitted to the ERC and the National Electrification Administration last month, which was signed by thousands of electric consumers and coursed through Rep. Manuel Sagarbarria of the 2nd district of Negros Oriental, questioning the company's high penalty interest rate. (PNA)
