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[av_heading heading=’Another option vs PECO: SP: CONSUMERS AS PART OWNERS ‘ tag=’h3′ style=’blockquote modern-quote’ size=’30’ subheading_active=’subheading_below’ subheading_size=’15’ padding=’10’ color=” custom_font=” av-medium-font-size-title=” av-small-font-size-title=” av-mini-font-size-title=” av-medium-font-size=” av-small-font-size=” av-mini-font-size=” admin_preview_bg=”]
BY GLENDA SOLOGASTOA
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Friday, November 17, 2017
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ILOILO City – Consumers must have a say in how the privately-owned Panay Electric Company (PECO) is managed, according to the Sangguniang Panlungsod (SP).
But how?
For his part, Mayor Jose Espinosa III said he wanted an electricity distributor that can provide good service to residents.
In a resolution, SP suggested the conversion into consumers’ PECO shares of stocks what’s left of the money that the power distribution utility should refund those it overbilled.
In 2004 the Energy Regulatory Commission (ERC) ordered PECO to refund consumers P631 million.
Citing figures from PECO itself, Councilor R Leone Gerochi said the company still has to refund consumers P124 million as of September 2017.
“The balance of the refund will be put to better use if the same will be converted into shares of stock to allow transparency and so that the electricity consumers of Iloilo City will have a ‘voice’ in the management of PECO,” read part of the SP resolution pressing for the conversion.
The city council also pushed for a government takeover of PECO until such time that a better power distribution utility comes in.
‘IT’S ABOUT THE SERVICE’
“I am more concerned of the service. Whoever could provide our residents good service, we will get that kind of service,” said Espinosa.
PECO’s franchise is expiring in 2019. The Lower House’s Committee on Legislative Franchises set the congressional hearing for this is Nov. 22.
“If the Lower House decides to let the national government take over Iloilo City’s electricity service, a lot of things should be taken into consideration such as what specific agency will take over and the expropriation of PECO’s site,” said Espinosa.
In getting a private property for public use, he stressed, there should be due process.
“What government agency will handle and which division of that will oversee,” said Espinosa.
Gerochi, chairperson of the SP committee on public utilities, said he sent a letter to PECO inquiring, among others, about the refund.
Initially, Gerochi said, PECO refused to answer but was eventually persuaded by ERC.
“PECO alleged that of the P631 million to be refunded, there is still a balance of P124,391,007.56 as of September 2017. The figures need audit verification,” according to Gerochi.
‘NOT POSSIBLE’
PECO said the proposed conversion of the refund into shares of stocks is not possible. The refund was for the generation charge from 1996 to 2005.
Generation charge refers to the cost of power generated and sold to distribution utilities by the National Power Corporation (NPC) as well as independent power producers (IPPs).
According to PECO, the refund was due to NPC subsidies that lowered power rates.
PECO had been refunding consumers every month since 2010 at P.01595 each. It sees completing the refund in two years at the most.
“Matters that have been decided by the ERC should be enforced by the ERC. (The refund) is being enforced. It is already being done,” said PECO’s legal counsel Honorato Sayno.
PECO has been monopolizing power distribution in this city for over 90 years. It seeks to renew its franchise that is expiring in 2019.
One of the reasons the SP cited was PECO’s failure to completely refund the consumers it overbilled.
The other reasons cited were poor customer complaints service, erroneous and inconsistent electric meter readings, and lack of transparency in operations.
EASIER SAID THAN DONE
Sayno said the proposed government takeover of PECO is easier said than done because one cannot take over a private property without just compensation.
“Close to several billions of pesos,” was how he described PECO’s worth.
“You cannot just take over PECO. If you want, you can put up your own poles, meters, office and substations, feeders and everything, or buy (PECO) out,” said Sayno.
The city council cited, among others, poor customer complaints service and erroneous electric meter readings for seeking a government takeover of PECO or the opening up of the power distribution business in the city to other players.
According to Sayno, however, the better option is to rectify the supposed errors or poor service of PECO./PN
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