The charge is also based on the type of use

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Unformatted text preview: hanges since a new manager took control in 1997. The distribution losses have been reduced from 30% to 2 0%. The department has reorganized itself into four zones instead of three. It is also planning to co- ordinate with Meralco for training of staff. The utility needs to tackle issues of cost recovery, which are identified below. 5.1.1 Problems of Cost Recovery First, the collection efficiency of PUD is only 66% of the total billing. The balance is covered by the City's general fund, even though PUD is an enterprise. Second, at the moment the enterprise faces 20% distribution losses of the total volume of electricity purchased for distribution. These are due to utilizing old infrastructure and pilferage of power. The department is trying to cut down the pilferage by taking stricter measures at the zonal level offices. Third, estimation of costs to be covered by user charges does not include the cost of capital investment. Fourth, the billing is often incomplete and delayed, which hinders enforcement of payment. Finally, since the service never breaks even, much less g...
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