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[av_heading heading=’PECO a necessary monopoly?’ 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 – Can there be another power distribution utility in this city other than Panay Electric Company (PECO)?
Those dissatisfied with PECO’s performance are pushing for the opening up of the power distribution service here to other players but Sen. Franklin Drilon doubts this is possible.
“My impression is that (power distribution in an area) is necessarily a monopoly. I am not aware of any franchise area (with) two (power distribution utility) franchisees,” said Drilon who was here yesterday for a multi-sectoral forum.
PECO’s franchise is expiring in 2019. It seeks to renew it for 25 more years but the Sangguniang Panlungsod is against the renewal, citing consumers’ complaints such as overbilling and poor customer service.
“I have to study whether or not there could be more than one power distribution utility in a locality (but) I doubt it very much. I don’t know,” said the Ilonggo senator.
PECO has been monopolizing the power distribution service in this city for over 90 years.
Drilon said the public should monitor the performance of the distribution utility and insist on better service.
He assured the city’s residents PECO would be grilled about its performance in Congress where its application for franchise renewal is pending.
On Nov. 22, the House Committee on Legislative Franchises started hearing PECO’s application.
“We will make sure PECO is held accountable because it is a public utility company that is supposed to provide public service,” said Drilon.
A franchise, he stressed, is a privilege granted by the State to a particular enterprise to provide public service.
“We will ask PECO to respond to all the complaints…what it will do to merit a renewal of its franchise,” said Drilon.
‘NOT FEASIBLE’
The senator also said a government takeover of PECO is not practicable.
“I don’t think it is feasible. I have to fear a distribution utility being run by government,” said Drilon, adding that “the government is a very poor manager.”
In a resolution, the Sangguniang Panlungsod called on the national government to take over the power distribution utility “until a qualified distributor comes in.”
“Can you imagine…if you buy anything you have to go through bidding? The immediate reaction to (the PECO) problem is takeover by the government which I am not favor,” said Drilon.
Citing the Electric Power Industry Reform Act (EPIRA), Drilon said such proposal could not be done.
It is the policy of the State, under Section 2 (d) of the EPIRA, “to enhance the inflow of private capital and broaden the ownership base of the power generation, transmission and distribution sectors in order to minimize the financial risk exposure of the national government.”
The Energy Regulatory Commission (ERC), the government agency that regulates the power distribution industry, has indicated it is not keen on a government takeover of PECO.
There is no precedent for such in the country, according ERC legal counsel Krisha Buela.
She also expressed concern on a possible disruption of power distribution.
“Assuming we don’t approve the franchise because may opposition ang mga tao sa Iloilo, what will happen? Saan kukuha ng kuryente,” Bohol’s Cong. Rene Relampagos, a member of the House Committee on Legislative Franchises, asked Buela on Nov. 22.
Buela said the government could not immediately take over PECO’s operation and should there be a power distribution utility interested to come in, a couple of years may not be enough for it to get a hang of the operation.
PECO itself has said the proposed government takeover is easier said than done.
One cannot take over a private property without just compensation, stressed Atty. Honorato Sayno of PECO.
He estimated PECO’s worth to be “close to several billions of pesos.”
“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 better option is to rectify the supposed errors or poor service of PECO, he stressed.
“We have one year to go pa before mag-expire ang daan naton nga franchise. We will do something about the problems nga ginpang-raise. We have programs to address these,” PECO vice president Randy Pastolero told Panay News./PN
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