Published
By Myrna M. Velasco
Whatever is the outcome
of the ongoing struggle overwhelming Panay Electric Company (PECO), the Lopez
group which owns the minority stake in the utility firm indicated that it is
ready to inject more capital in the venture if needed.
According to First
Philippine Holdings Corporation Chairman Federico R. Lopez, their company will
always want to be there (at PECO), “because we think it’s like our family’s
commitment to Iloilo.”
He added that his
father, the conglomerate’s patriarch Oscar M. Lopez, “always wanted us to be
part of Iloilo’s development.”
Lopez emphasized that
“although we have not gone big as what the other groups had, as I always told
him, we’ll maintain our presence in PECO. That’s our way to make sure that
we’ll be part of Iloilo’s development.” The Lopez group owns 30-percent in
PECO; while the Cacho family holds majority equity of 70-percent.
He further stressed “if
it means that there would be a change or whatever, we’re also willing to
partner with whoever it is. It’s our commitment to Iloilo, that’s what
primarily it is.”
Just recently, the Private Electric Power Operators Association (PEPOA) has questioned the technical capacity of a mining firm intending to take over the operations of the power distribution firm.
Just recently, the Private Electric Power Operators Association (PEPOA) has questioned the technical capacity of a mining firm intending to take over the operations of the power distribution firm.
PEPOA primarily raised
this concern with the Legislative Franchise Committee of the House of
Representatives which had been instrumental in fast-tracking the award of a
franchise to mining firm More Minerals Corporation (MMC) to take possession of
PECO’s operations of the power distribution network in its service area in
Iloilo.
The group warned “a
power crisis will definitely occur in Iloilo City and nearby towns if the
franchise of an existing utility operator is not renewed and given instead to
an applicant who has yet to put up the needed infrastructure for electric
distribution utility.”
PEPOA is fiercely
opposing “the franchise application of a new applicant (MMC),” that has been
attempting to take over the Iloilo power utility’s operations.
In a letter to House
Legislative Franchise Committee Chairman Franz Alvarez, the association of the
power firms averred that “we are shocked to learn of the hasty approval of the
franchise application of MMC to the detriment of the incumbent distribution
utility PECO.”
PEPOA President Ranulfo
M. Ocampo has stipulated in particular that “this development is deeply
concerning to us as it puts a highly urbanized city like Iloilo at risk.”
He emphasized that “MMC
is primarily a mining company, hence, (it) does not have the technical
capability to operate and maintain a power distribution utility.”
Ocampo, who is a lawyer
by profession, further opined that “MMC does not have the track record or the
experience in running an electric distribution utility.”
It was similarly
contended that “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.”
Conversely, PECO can readily lean on its 95 years of power industry experience – and has in fact been in the roll of top distribution utility performers in the country, as gauged from its System Average Interruption Frequency Index (SAIFI) record.
Conversely, PECO can readily lean on its 95 years of power industry experience – and has in fact been in the roll of top distribution utility performers in the country, as gauged from its System Average Interruption Frequency Index (SAIFI) record.
PEPOA cited in its
letter that “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.”
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