‘Stronger remedies’ against PECO sought

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BY CAROLYN JANE ABELLO
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January 16, 2018
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ILOILO City – How should residents hold Panay Electric Company (PECO) accountable for alleged erroneous or overbilling?

The Sangguniang Panlungsod adopted the recommendation of its Transportation, Energy and Public Utilities Committee: ask the Energy Regulatory Commission (ERC) to slap PECO with administrative sanctions.

Is this enough? Councilor Plaridel Nava doesn’t think so. There should be “stronger remedies to relieve the consumers,” he stressed.

Nava, a lawyer, pressed that PECO, the sole power distributor in this city, be charged with estafa.

He said the Transportation, Energy and Public Utilities Committee may recommend that the City Legal Office study the possibility of filing such charge.

“There is overbilling, there is overcharging. People are made to pay for something they have not enjoyed,” said Nava. “How about recommending criminal remedies?”

According to the councilor, the ERC appeared slow to act on the concerns of PECO consumers.

The SP will forward to the ERC the recommendation of the Transportation, Energy and Public Utilities Committee calling for the imposition of administrative sanctions against PECO.

Councilor R Leone Gerochi, chairperson of the committee, said the City Legal Office would also be asked to consider the suggestion of Nava.

Mayor Jose Espinosa III, however, appeared reticent on the proposed estafa complaint. He said he would study the matter himself.

Two months ago, in November 2017, the city council passed a resolution “vehemently opposing” the renewal of PECO’s franchise and calling on the national government to take over the power distribution utility “until a qualified distributor comes in.”

Espinosa, however, warned that the nonrenewal could disrupt the economic progress Iloilo City is currently enjoying.

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 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 ERC ordered PECO to refund consumers P631 million.

“Up to this date, the refund has not been completed,” said Gerochi in November.

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./PN
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