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[av_heading heading=’BOOM TO BUST? Joe warns: PECO exit may destabilize city’s power supply ‘ tag=’h3′ style=’blockquote modern-quote’ size=” 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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ILOILO City – The nonrenewal of Panay Electric Company’s (PECO) franchise could destabilize the power supply and disrupt the city’s progress, warned Mayor Jose Espinosa III.
Espinosa was not keen on supporting the Sangguniang Panlungsod (SP) resolution opposing the renewal of PECO’s franchise though he said he respected the city councilors’ stand.
PECO has been the sole power distribution utility in this city for the past 90 years. Its franchise is expiring in 2019.
“The city councilors are entitled to their opinion and we respect that. Tan-awon naton kon ano maabtan sina,” said Espinosa.
The city mayor expressed concern that the economic boom the city has been enjoying these past few years could be disrupted. He did not believe the SP’s position on PECO was reflective of the city residents’ collective sentiment.
Espinosa recalled boasting to visiting Chinese businessmen recently that Iloilo City had a stable energy supply.
The reliability of power supply was one of the things the prospective investors were looking for in a place, he explained.
The SP called on the national government to take over PECO’s operations until other power distribution players have come in. It criticized, among others, PECO’s poor customer complaints service and erroneous electric meter readings.
Espinosa said the city government is open to investors in the power distribution business. What is important, he stressed, is the continuity of the power distribution service.
Some 24,000 city residents have also signed a petition opposing the renewal of PECO’s franchise.
“Kon may nagpirma, they have to know kon ano ang purpose. Maski 100 percent pa (of the city’s population) ang mapirma, pero ano ang ginapangayo? Kon indi pag–i-renew (PECO’s franchise), what then? Ano matabo? That is my main concern,” said Espinosa.
Espinosa said he was open to anything “basta workable or doable, indi nga hypothetical nga alternative.”
Aside from government takeover and entry of other power distribution players, the city council said another option is the conversion into consumers’ PECO shares of stocks what’s left of the money that the power distribution utility should refund those it overbilled. This way, it said, consumers would have a say in the way company is managed.
“Dapat may option and it should be an option that would be better, indi option that will be worse (than what’s being complained about),” said Espinosa.
Mikel Afzelius, PECO corporate communications officer, Panay News their company 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.”
In 2004 the Energy Regulatory Commission ordered PECO to refund consumers P631 million. As of September 2017, PECO still has to refund consumers P124 million.
According to the SP, “The balance of the (PECO) 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.”/PN
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