Power firm seeks rate increases

Sunstar Iloilo

CONSUMERS will feel the brunt of power rate increases within this year, with the Panay Electric Company (Peco) seeking an increase in its distribution charge for its five-year regulatory period.

Randy Pastolero of Peco said the power firm filed the petition with the Energy Regulatory Commission (ERC) by seeking approval for the increase in its distribution charge from October 2011 to 2015, in compliance with the regulatory body's performance based regulation (PBR).

If approved, the distribution charge will go up from its current level of P0.87 a kilowatt-hour to P1.20 a kilowatt-hour, or about P0.33 increase per kilowatt-hour at the minimum.

The PBR is a price setting scheme whereby the rates are adjusted yearly based on spending requirements, inflation and quality of service, among others.

Peco's move to increase rate charges, however, meets stiff opposition from the Freedom from Debt Coalition (FDC).

In a statement, the FDC said that Peco is building a P110 million office building in its old Gen. Luna plant and the cost is being passed on to power consumers in Iloilo.

FDC also said that Peco will also construct a new power sub-station amounting to P170 million in its property along Diversion road in Iloilo City.

The power distribution firm will also buy new vehicles for their executive officers; new office facilities and equipment like computers, chairs, and tables; concrete poles and distribution transformers, and hire new office personnel with all costs passed on to consumers.

FDC pointed out that Peco customers in Iloilo City are paying the highest electricity rates in the country at more than P13 per kilowatt-hour and where daily brownouts and power shortage is a daily menu of consumers.

The group then called on the ERC to stop the application of Peco and impel the power firm to provide better service to its 44,000 consumers in Iloilo City alone, inclusive of generation, transmission, tax and subsidy charges. (LCP)