Wednesday, February 5, 2014

Shahani asks court to stop PANELCO rate increases

Manila Standard Today
By Johanne Macob | Feb. 05, 2014 at 12:01am

URDANETA CITY, Pangasinan ---A member of the provincial board has asked a local court to stop a power rate increase by the Pangasinan Electric Cooperative (PANELCO), which he described as “a bad decision.”

Ranjit Shahani said the increase from P9.80 per kilowatt hour to P15.40 KWH, the second highest power rate increase in the country, was “caused by negligence and should not be passed on to the consumers.”
“We are trying to stop the implementation of the increase by PANELCO, and we also ask for the issuance of a Temporary Restraining Order,” Shahani’s lawyer Nelson Palaris said.
PANELCO gets its 40 megawatts electricity supply from GN Power Mariveles Coal Plant (GN Power). But in the past several months, GN Power was able to supply only 20 mw to PANELCO because of periodic maintenance works.
The shortage forced PANELCO to buy electricity from the Wholes sale Electricity Spot Market at a higher rate. The cooperative wants to pass on the cost difference to consumers.
Palaris said the consumers had nothing to do with the shortage, and it was PANELCO’s fault because it relied solely on one generating company.
Julius Cesar Peralta, PANELCO chairman of the board, said the rate increase was authorized by the Energy Regulatory Commission.
PANELCO serves about 150,000 consumers in Urdaneta City and 18 municipalities in eastern Pangasinan. Other parts of the province are served by Dagupan Electric Corp and Central Pangasinan Electric Cooperative.   source

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