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[av_heading heading=’AN INDEPENDENT VIEW ‘ 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 NEIL HONEYMAN
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Tuesday, November 21, 2017
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LAST week’s Sangguniang Panlungsod (SP)’s resolution to “vehemently” oppose the renewal of Panay Electric Company’s (PECO) franchise came as no surprise.
The House Committee on Legislative Franchises is due, tomorrow, to hear PECO’s application to renew its franchise. I hope the Committee does not make an immediate decision.
SP’s reported view that the government should take over the power distribution for Iloilo City until a qualified distributor is found is hard to implement.
We seem to be heading for an imbroglio.
A long time ago Central Negros Electric Cooperative (Ceneco) received many allegations of mismanagement. The National Electrification Administration (NEA) temporarily took over. Its representative, Benjie Peralta, was installed and handled day-to-day management while General Manager Chris Rios took a leave. But Mr. Peralta’s role was merely “steadying the ship.” I do not think NEA could take over PECO, particularly when PECO could be uncooperative.
Mayor Jose Espinosa III’s expression of concern about SP’s resolution is well-founded. But we do need a full exposé of our concerns about PECO.
For me, pricing is a big issue. My esteemed colleague on this page, Luis M. Buenaflor Jr., has drawn attention to the very high rate charged by PECO, P12.95 per kilowatt hour. We need a full and clear explanation as to why the rate is so high.
A related concern is the ownership of PECO and the entities that sell electricity to PECO. If there is overlapping ownership, then there is a temptation for high prices to be charged. We need to see the contracts that exist between PECO and its suppliers.
One aspect that I noticed several years ago was the rapidly increasing prices charged by PECO to its consumers. By 2009, consumers were already paying around P10 per kilowatt hour. In contrast, my Ceneco bill for March 2009 was P5.37 per kWh.
Over the past eight years, however, Ceneco’s charge has doubled to P10.56 per kWh. It would have been more but my November 2017 bill includes a refund of P0.222 per kWh due to Ceneco’s balking at ERC’s bad decision to charge Ceneco’s consumers P232 million to pay for electricity we did not receive.
Ceneco has made some bad bilateral contracts from 2011 onwards. The lame excuse made by Ceneco’s former president is that the amount we have to pay is “within accepted limits.” There are no accepted limits. We expect Ceneco to provide electricity at the best possible price and it has chronically failed to do this due to signing disadvantageous contracts instead of using the buoyant Wholesale Electric Spot Market (WESM). Does PECO source any electricity from WESM? This would save the consumers much money. Is PECO interested in saving consumers’ money?
Electricity consumers are not well-served. Energy secretary Alfonso Cusi is trying to suggest ways we can reduce our electricity consumption. The only way I can do this is to reduce my standard of living. Room temperature Pilsen is not an option.
Mr. Cusi could help us more by examining the reasons why the cost per kilowatt hour is so high and then taking appropriate action.
This would include nullifying the many contracts that are disadvantageous to the consumer. (jbabueg@yahoo.co.uk)/PN
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