ILOILO City – Panay Electric Co. (PECO) committed operational and maintenance lapses that endanger consumers’ lives and properties, results of the Energy Regulatory Commission’s (ERC) inspection here showed. For this, the franchise-less power distribution utility faces administrative and possibly criminal sanctions.
ERC sent a technical team to this southern city last month following Mayor Jerry Treñas’ complaint over a series of pole fires. PECO’s electric distribution system was inspected.
The team discovered lapses in PECO’s “operations and (in the) maintenance of its distribution system thereby posing danger and risks to the lives and properties of its consumers,” according to ERC chairperson and chief executive officer Agnes Devanadera.
In an order dated Nov. 26, 2019, PECO’s directors and officers were required to explain why no administrative penalties should be imposed and/or criminal action instituted against them for violating pertinent provisions of the following:
* Philippine Distribution Code (PDC) 2017 Edition
* Amended Distribution Services and Open Access Rules (DSOAR)
* Amended Elevated Metering Center (EMC) Rules
* ERC Resolution No. 12, Series of 2009 (Guidelines for the Accreditation of Satellite Laboratories of Meter Shops)
The following were what the ERC inspection team discovered:
* PECO’s protective devises were not properly rated and designed
* some poles were found leaning and in unsafe positions
* some meters were found to be clustered and installed in an Elevated Metering Center (EMC) without securing prior ERC approval
ERC also discovered that the Certificate of Authority (CA) for PECO’s meter shop expired on Nov. 18, 2019 and the company had not filed an application for the renewal of the same.
“PECO must submit its explanation within 15 days from receipt of the Commission’s order pursuant to the relevant provisions of the Electric Power Industry Reform Act (EPIRA). We need to accord PECO the opportunity to explain its side before we evaluate the extent of their liability for the operational lapses that were discovered,” Devanadera said.
PECO’s franchise as sole power distributor in Iloilo City expired on Jan. 19 this year. It failed to secure an extension from Congress over several issues such as poor customer relations, erroneous billings, power failures, high rates, etc.
Congress instead granted MORE Electric and Power Corp. (MORE Power) a 25-year franchise to distribute electricity in the city. President Rodrigo Duterte signed this legislative franchise law, Republic Act (RA) 11212, on Feb. 14 this year.
There is, however, a two-year transition period provided in the franchise law so as not to disrupt the distribution of power in the city. ERC thus allowed PECO to temporarily operate via a certificate of public convenience and necessity until MORE Power would be operationally ready within two years from the date it was issued the franchise./PN