Monday, February 3, 2014

CASURECO II receives Notice of Default from Power Supplier

PRESS RELEASE 2014-001
CASURECO II receives Notice of Default
in WESM Bills amounting to Php 60M

by Vincent Hidalgo, Energy Trader, CASURECO II
January 30, 2014

The Camarines Sur Electric Cooperative II advises its customers of the Default Notice of Unpaid WESM Bills issued to Casureco II for the outstanding balance receivable in the amount of Php 60,549,201.52 for the billing period November 26 to December 25, 2013. The said outstanding balance is in the vicinity of the cooperative’s estimated cash deficit as a result of the Order of Branch 33 of the Regional Trial Court of Pili to fix the cooperative’s total rates at Php 8.42 per kilowatt hour for all types of member-consumers.


Order dated January 6, 2014 of Branch 33 of RTC Pili

Casureco II heeded the Order of the Court dated January 6, 2014 on Civil Case No. P 2547 in relation to the Injunction imposed last July 6, 2010 which specifically directs Casureco II to:

1. Cease and desist from implementing collections and disconnections of the power rate increase for the period November 26 to December 26, 2013 and onwards until further order of the Court.
2. Implement the generation charge pegged by the court at Php 4.8932 for generation charge and Php 4.8932 as distribution charge for a total of Php 8.42 per kilowatt hour.
3. Not impose penalties for late payments based on the questioned excessive increase but may do so if based on the court mandated rate billing at Php 8.42 per kilowatt hour.
4. Not cause power disconnections to households of consumers and end-users unless such disconnections are based on non-payment of power rate billings based on the foregoing court mandated power rate.
In view of the said legal drawback, the cooperative projected a deficit in collection estimated a figure of Php 135M for the month of January 2014 as detailed in the below table:

Default Notice on Unpaid WESM Balance

Last January 28, 2014, the Philippine Electricity Market Corporation issued to Casureco II a Default Notice for Unpaid WESM Bills in the amount of Php 60,549,201.52 pursuant to WESM Rules 3.14.11. Apart from this, PEMC is also demanding for the replenishment of the Prudential Requirement in the amount of Php 20,047,617.60 which was used as additional settlement of the WESM payables for the December 2013 bill.

While Casureco II has already appealed for deferment of collection of the said outstanding balance in light of the Order of the Court, the cooperative is advising its member-consumers of the threat of disconnection if said appeal is not considered. The said appeal of the cooperative shall be one of the agenda in the upcoming PEMC Board meeting on February 5, 2014 and only after then, can the cooperative can release an official statement if there is a disconnection issue to be addressed. Rest assured that Casureco II is continually exploring financial means to settle the payables and is prioritizing the provision of continuous supply to its entire coverage area. Dios Mabalos Po! Power Supplier Payables (Jan 2014) Collection using 8.42 Variance Excess/(Deficit) 289,898,858.40 153,192,856.81 (136,706,001.59)
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