MEMORANDUM
TO : ALL COOPERATIVES
FROM : THE CHAIRMAN
SUBJECT : NOTICE TO COMPLY WITH SECTION 4 (vv) OF REPUBLIC ACT NO. 11494, OTHERWISE KNOWN AS THE “BAYANIHAN TO RECOVER AS ONE ACT”
DATE : OCTOBER 22, 2020
Pursuant to Section 4 (vv) of Republic Act No. 11494, otherwise known as the Bayanihan to Recover As One Act, to wit:
“SEC. 4. COVID-19 Response and Recovery Interventions. – Pursuant to Article VI, Section 23(2) of the Constitution, the President is hereby authorized to exercise powers that are necessary and proper to undertake and implement the following COVID-19 response and recovery interventions:
(vv) Directing all institutions providing electric, water, telecommunications, and other similar utilities to implement a minimum of thirty (30)-day grace period for the payment of utilities falling due within the period of ECQ or Modified Enhanced Community Quarantine (MECQ) without incurring interests, penalties, and other charges: Provided, That after the grace period, unpaid residential, MSME and cooperatives utility bills may be settled on a staggered basis payable in not less than three (3) monthly installments, subject to the procedural requirements of the concerned regulatory agencies in the imposition of such installment plan without interests, penalties, and other charges: Provided, further, That covered institutions under this subsection may offer less onerous payment terms, with the consent of their clients subject to the approval of their respective regulators: Provided, furthermore, That in the case of the electric power sector, the minimum thirty (30)-day-grace period and staggered payment without interests, penalties and other charges shall apply to all payments due within the period of the CQ in the entire electric power value chain to include generation companies, the transmission utility, and distribution utilities,”
All cooperatives providing electric, water, telecommunications, and other similar utilities are directed to implement a minimum of thirty (30)-day grace period for the payment of utilities falling due within the period of Enhanced Community Quarantine (ECQ) or Modified Enhanced Community Quarantine (MECQ) in favor of its member-consumers.
Interests, penalties, and other charges shall not be imposed against future payments of the member-consumers arising from the implementation of the said grace period.
It must be emphasized that in the case of the electric power sector, the minimum thirty (30)-day-grace period shall apply to all payments due within the period of the community quarantine (CQ) in the entire electric power value chain to include generation companies, the transmission utility, and distribution utilities.
After the given grace period, unpaid residential, MSME and cooperatives utility bills may be settled on a staggered basis payable in not less than three (3) monthly installments, without interests, penalties, and other charges, subject to the procedural requirements of the concerned regulatory agencies in the imposition of such installment plan.
Covered cooperatives may offer less onerous payment terms, but must be undertaken with the consent of their clients and subject to the approval of the Authority.
For compliance.
(Sgd) ORLANDO R. RAVANERA, CSEE, CEO VI
/OC206
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