The National Electrification Administration (NEA), through Regulatory Advisory No. 2023-004 dated 05 June 2023, instructed all Electric Cooperatives (ECs) to counter-check and validate power bills from power suppliers.

Republic Act No. 9136 or the Electric Power Industry Reform Act of 2001 mandates all Electric Cooperatives (ECs) to supply electricity in the least cost manner to its captive market. The ECs must validate and verify the pass-through generation charges billed by contracted Generation Companies (GenCos) which are then passed on to their member-consumer owners (MCOs).

With the decrease of the fuel cost in the market, the ECs are directed to strictly scrutinize the power bills received from their contracted GenCos, calculate the monthly generation charges and fuel cost computations (including the relevant heat rates). There is a need for the ECs to ensure that these variable costs conform to the terms of their respective approved Power Supply Agreements (PSAs) and to the current cost of fuel in the world market. ###