BAGUIO CITY – The Benguet Electric Cooperative (BENECO) has successfully improved its collection efficiency and reduced system losses through the apprehension of 283 individuals with electric meters violating the anti-pilferage law in 2023.
The Special Equipment and Metering Office (SEMO) personnel spearheaded these operations, resulting in the collection of P8.5 million in unpaid arrears with surcharges and value-added tax (VAT).
In 2023, the apprehension activities led to a significant increase of P5 million in back-billed amounts compared to the P3 million recorded in 2022.
Most of these cases involved owners of disconnected accounts who were caught illegally reconnecting their meters and subsequently paying penalties and arrears, as highlighted by SEMO supervisor Engr. Mario Calatan.
The intensified efforts of BENECO’s SEMO apprehension team are evident in the jump from 171 apprehensions in 2022 to 283 in 2023.
These activities contributed to a remarkable decrease in the System Loss (SL) rate, dropping from 9.69% in 2022 to 7.57% in 2023.
A lower SL rate translates to reduced system loss charges for consumers of electricity.
BENECO’s Network Services Department (NSD) and Legal Office are actively handling cases of illegal connections, with demand letters issued to offenders.
Offenders are given a 3-day grace period to settle, and failure to comply may result in legal action.
Atty. Mylene Manogan explained that non-compliance may lead to the filing of cases against the offenders.
“Failure to settle or at least to come to BENECO and express their willingness to pay, will signal the next step which is filing of a case against them,” Atty. Mylene Manogan said.
System loss (SL) charge, representing stolen electricity, is the third-highest bill component in the unbundled rates that consumers pay monthly.
The reduction in SL is crucial as it signifies the recovery of the cost of power lost due to technical and non-technical losses.
Collection efficiency (CE) and SL are key indicators of a well-managed distribution utility.
A low CE could lead to difficulties in meeting financial obligations to power suppliers and other service providers.
The majority of violators opted to settle with BENECO to avoid legal escalation after receiving demand letters.
Various forms of violations, such as direct connection, illegal transfer of kilowatt-hour meters, illegal reconnection, and illegal installation of KWH meters, were addressed by the SEMO anti-pilferage apprehension team in 2023.
Those found guilty of violating Republic Act 7832 or the Anti-electricity and Electric Transmission Lines/Materials Pilferage Act of 1994 face imprisonment ranging from 6 to 12 years or fines ranging from P10,000 to P20,000, and probation is not an option.
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