The Central Negros Electric Cooperative said in a press release that it is only a collecting agent of the systems loss charges and does not benefit from it.

The CENECO statement came in the wake of the controversies involving Manila Electric Company that is being accused of passing on its “systems losses” to its consumers.

The press release said that under Republic Act 7832, systems loss  refers to the unaccounted power consumption in kilowatt-hours or the difference between the energy purchased and/or generated from the energy billed or sold. 

Being a component item in the unbundled rates, the press release said, systems loss is inherent in the distribution system or business of every electric utility, and inevitable because electric equipment and conductors contribute to technical systems loss.

The amount of systems loss collected by CENECO from its consumers, forms part of the coop’s remittance to the National Power Corp., it also said.

“We simply act as collecting agent as mandated by law and member-consumers can validate this by examining their unbundled electric bill,” the press release from CENECO added.*

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