ILOILO City – The Sangguniang Panlungsod (SP) passed a resolution “vehemently opposing” the renewal of Panay Electric Company’s (PECO) franchise and calling on the national government to take over the power distribution utility “until a qualified distributor comes in.”
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 in pushing for the nonrenewal of PECO’s franchise was the power distribution utility’s failure to completely refund the consumers it overbilled.
In 2004 the Energy Regulatory Commission (ERC) ordered PECO to refund consumers P631 million.
“Up to this date, the refund has not been completed,” said Councilor R Leonie Gerochi.
The other reasons the SP cited were the following:
* poor customer complaints service
* erroneous and inconsistent electric meter readings
* lack of transparency in operations
Gerochi, the resolution proponent, also criticized PECO for not having the courtesy of informing the city government of its desire to continue distributing power to the city.
PECO filed the application to renew its franchise with the Committee on Legislative Franchises in the House of Representatives. The congressional hearing for this is Nov. 22.
In a resolution passed last week, the SP urged the committee to hold the hearing in this city to give consumers the opportunity to speak about PECO.
Mikel Afzelius, PECO corporate communications officer, played down the city council’s call for the non-renewal of the power distribution utility’s franchise.
PECO, he said, wanted to work with the city council for the city’s progress.
In an interview with Panay News a day earlier, Afzelius said, “We have a common ground in trying to help the people of Iloilo City…the city council wants to protect the rights of the citizens while we in PECO want to serve our valued consumers better.”
Regarding the SP’s call for a government takeover of PECO, Afzelius cited “technicalities and laws involved” but did not elaborate.
“So far, the national government has not indicated any intention for a takeover,” he said.
Hoping for a favorable decision on the franchise renewal application, Afzelius said, “We will continue to work on our projects and programs for the improvement of our services and progress of the city.”
According to Gerochi, PECO’s poor customer complaints service and erroneous meter readings “have caused a considerable number of its customers to suffer anxiety and sleepless nights.”
“Their electric bills suddenly increase more than 10-fold of their usual bills without any adequate explanation or rectification from PECO,” he said.
Instead of addressing billing complaints, Gerochi said, PECO makes consumers sign promissory notes “where consumers are compelled to pay without justification as to the said (billing) increase.”
“PECO has caused discomfort and inconveniences to consumers through inefficient services in violation of its congressional franchise for the past long years,” read part of the SP resolution.
In April, the SP urged the House of Representatives to investigate PECO.
Copies of the resolution will be forwarded to Cong. Franz Alvarez, chairman of the Committee on Legislative Franchises; House Speaker Pantaleon Alvarez, Presidential Spokesman Harry Roque and Cong. Carlos Isagani Zarate of Makabayan party-list.
Only one SP member did not support the resolution. Councilor Eduardo Peñaredondo abstained from voting.
The resolution was “hastily prepared” and he did not agree “with the wordings,” he said.
Peñaredondo believed the SP’s stand did not necessarily represent the sentiments of all stakeholders in the city, most especially the business sector.
Afzelius told Panay News PECO is capable of supporting the energy needs of businesses.
“Big investors do their homework. It is not by accident that they are here. These investors are comfortable in investing in cities run by private utilities because of the confidence they have in private firms,” he pointed out.
PECO, he said, “makes sure to take care of these investors to spur economic growth in the city and to provide major job opportunities for our fellow Ilonggos.”/PN
