05:32
AM October 08, 2018
Errors in billing and
overcharging have led to a 1,000 percent increase in charges being collected
from electricity consumers in Iloilo City, prompting many congressmen to act
against renewing the franchise for the city’s power distributor.
Rep. Franz Josef
Alvarez, chair of the House committee on legislative franchises, said the 1,000
percent increase in consumers’ bills as a result of failure by Panay Electric
Co. (Peco) to rationalize its billing system was just one of several acts of
incompetence that convinced congressmen to reject an extension of Peco’s
franchise.
Peco has been
distributing power in Iloilo City for the past 90 years. Its franchise expires
in January next year.
Complaints
Early this year, Iloilo
City Councilor Joshua Alim asked the Energy Regulatory Commission (ERC) to
address complaints against excess billing by Peco, which came after a new
metering system was adopted.
The ERC resolved 80
percent of the complaints except those on increased charges related to billing
systems.
Alim had cited a report
of Singapore consultancy firm WSP, which concluded that Peco continued to lag
behind power distributors in other Philippine cities like those in Manila, Cebu
and Davao
in terms of systems and infrastructure reform.
in terms of systems and infrastructure reform.
Complaints against Peco
led to the House approving on second reading a bill granting franchise to distribute
power in Iloilo City to another distributor.
90 years
House Bill No. 8302 was
approved on Oct. 2, according to the House website.
The bill, if passed
into law, would end Peco’s 90-year hold on power distribution in the city.
ADVERTISEMENT
Alim welcomed the
bill’s approval, saying Ilonggos deserved a new power distribution company.
The Iloilo City Council
had expressed opposition to renewing the Peco franchise through a resolution
filed by Councilor R. Leone Gerochi.
Mikel Afzelius, Peco
corporate communications officer, denied reports of overcharging.
He said Peco had
invested billions of pesos in upgrading services and setting up new lines and
substations because of increased demand.
He also denied a report
that Peco owed P631 million in refund.
Afzelius said Peco had
incorporated the refund of more than 15 centavos per kilowatt hour in every
billing statement since 2009.
Only P31 million
remains to be refunded, which will be completed by the second quarter of next
year, he said. —With a report from Nestor P. Burgos
No comments:
Post a Comment