Negros Electric and Power Corporation (Negros Power) has assured consumers that its current electricity rates follow all regulatory guidelines set by the Energy Regulatory Commission (ERC), in response to questions raised by the Bacolod Sangguniang Panlungsod regarding the legality of a specific charge on power bills.
The company’s statement came after the City Council approved a resolution on July 9, authored by Councilor Wilson Gamboa Jr., seeking clarification on the continued collection of the Reinvestment Fund for Sustainable Capital Expenditures (RFSC) fee amounting to P0.1518 per kilowatt-hour.
Negros Power President and Chief Executive Officer Roel Castro, in a statement issued Monday, July 14, confirmed they had received the resolution and will respond accordingly.
“For the comfort of the consumers and the public, Negros Power’s rates are in accordance with the Certificate of Public Convenience and Necessity (CPCN) granted by the Energy Regulatory Commission and all regulatory rules and laws,” Castro said.
The RFSC, as outlined in ERC Resolution No. 20, series of 2009, is a capital contribution scheme originally intended for electric cooperatives (ECs) to fund system expansion, rehabilitation, or upgrades, provided they are under an approved capital expenditure (CAPEX) plan.
Gamboa argued that since Negros Power is a private stock corporation registered with the Securities and Exchange Commission (SEC), and not an EC, the collection of the RFSC raises legal and ethical questions.
Gamboa, who chairs the SP Committee on Human Rights, said access to electricity is a basic human right.
He warned that any charge collected without proper regulatory backing could add undue burden to consumers already grappling with inflation and rising power costs.
He added that the resolution was crafted in response to public outcry and to push for more transparency and consultation in the privatized power sector.
Negros Power has been given ten days from receipt of the resolution to submit its formal written response to the city council.*