Danessa Rivera (The Philippine Star)
- September 22, 2018 - 12:00am
MANILA, Philippines — Iloilo is at
risk of a power crisis if the franchise of the existing power utility in the
island is not renewed and is instead given to a new applicant without
infrastructure, according to the country’s umbrella group of private power
distributors.
In a letter sent to the House
committee on legislative franchises, the Private Electric Power Operators
Association (PEPOA) opposed the franchise application of a new applicant
contesting the renewal bid of the current utility firm Panay Electric Co.
(PECO) that has been operating in Iloilo City for nearly a century now.
“We are shocked to learn of the hasty
approval of the franchise application of More Minerals Corp. (MMC) to the
detriment of the incumbent distribution utility Panay Electric Company (PECO),”
PEPOA said in a letter to Rep. Franz Alvarez, who chairs the committee.
“This development is deeply
concerning to us as it puts a highly urbanized city like Iloilo at risk,” the
letter stated.
PEPOA president Ranulfo Ocampo said
MMC is primarily a mining company, hence, does not have the technical
capability to operate and maintain a power distribution utility.
“Even if MMC were to change its
primary purpose into power distribution, no company can get the required
experience and qualifications in just a few days,” he said.
According to Ocampo, who is a lawyer
by profession, MMC does not have the track record or the experience in running
an electric distribution utility.
On the other hand, PECO has been in
the business for 95 years now and belongs to the top performers in the country,
as public records show that its System Average Interruption Frequency Index
(SAIFI) was among the top in the country.
“They (PECO) are among the top 15
percent in terms of positive reliability performance compared to the other 146
electric distribution utilities in the country,” Ocampo said.
He also brushed aside allegations of
mounting consumer complaints over erroneous billings against PECO, saying
official records at the Energy Regulatory Commission (ERC) indicating such
complaints comprised a negligible 0.01 percent of PECO’s more than 60,000
customers.
“This is not something new to the
industry and is certainly not sufficient basis for withholding the
franchise renewal of PECO,” Ocampo said.
The PEPOA official maintained that
renewing PECO’s franchise would guarantee a stable power supply in Iloilo City.
Conversely, favoring a new company
with no existing utility infrastructure would put the city at great risks.
“Moreover, it will result to a
duplication of distribution utilities and will be a total waste of scarce
resources,” Ocampo said.
He said the duplication would
ultimately redound to higher power rates in Iloilo City to the prejudice of the
consumers.
“Such a scenario is inefficient and
has never been done in the history of the Philippines,” he said.
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