Power coop to pass on new tax to members

Sunstar Baguio 

ADDITIONAL rates will be passed on to consumers if the City Council approves a proposed measure mandating utility companies to pay real property taxes (RPT) for the posts erected on public properties.

In Baguio, the Benguet Electric Cooperative (Beneco) is the only utility company that erects posts. Other utilities pay a rent to Beneco, via a "pole sharing agreement.

Councilor Nicasio Aliping Jr., proponent of the measure, said revenue will be added to the city's coffers if Beneco is made to pay RPTs. He said this is practiced by other local governments.

After learning Beneco rents out its posts to other utility companies, the councilor said the City Government has to have its share from "revenues" the cooperative earns.

The councilor also called for an inventory of Beneco posts erected on public properties.

Aliping said he would need the data so he would be apprised of other utilities the City Government might want to collect taxes from.

Rights of way and air space are within the jurisdiction of the City Government, Aliping explained.

In a recently concluded public consultation, Beneco General Manager Gerardo Verzosa said the real property taxes the city proposes to collect will be passed on to consumers.

He said in the current power bills, the charges they collect have been pre-approved by the Energy Regulatory Commission (ERC).

Verzosa explained "regulatory fees" such as RPT as proposed by a member of the council, is not included in the power bills as approved by the ERC, hence the need to pass this on to consumers.

"Magiging kolektor lang ng city ang Beneco," Verzosa told reporters.

He added that Beneco does not have enough collections from the rent of its poles because many utilities are allegedly delinquent in paying.

Beneco charges P50 annually per pole.

Verzosa said that in its agreement with cable and telephone companies, Beneco could take down cables of delinquent payers. However, they have not implemented this as it could paralyze the operation of many offices and households subscribing to these companies. (Rimaliza Opiña)

Published in the Sun.Star Baguio newspaper on February 17, 2011.