ERC affirms unbundling of Peco's power rate

The Energy Regulatory Commission (ERC), in relation to the rate unbundling application of the PECO has released a new order dated January 19, 2005 denying the Motion for Reconsideration of PECO to the Commission's earlier order that mandated the distribution utility to unbundle and lower its rates.

“This is a welcome development and we are happy that our vigilance has paid off.   The rate unbundling and the P2 reduction is supposed to have been implemented six months ago.   We believe that PECO's Motion for Reconsideration was only a ploy to delay the implementation of the order. We hope that this time, PECO will respect the new ERC order,” said lawyer Romeo Gerochi who chairs the Freedom from Debt Coalition (FDC-IIoilo).

The first order which came out last May 2004 effectively lowers the rate of PECO by more or less P2.00 per kilowatt-hour.   It can be recalled that groups led by the FDC and the Ilonggo Consumers Advocacy and Welfare (ICAW) led a series of consumer protests and the filing of legal action against PECO for not implementing the first ERC order.

FDC and ICAW led by Gerochi are also the main intervenors that represented the consumers in several hearings on the unbundling case which was held at the ERC Head office in Pasig City .   The series of hearings lasted more than a year before the decision came out.

FDC stressed that the first ERC decision exposed PECO's malpractices in rate-making where they pad and bloat the expenses that are recoverable to power consumers.   In said order, several assets including its property in Benigno Aquino Highway , appraised at P51 million in value , which PECO claims to be its electric post depot were also disallowed by the Commission to be included in its rate base.

According to Gerochi, this latest ERC order which affirmed its earlier decision will be effective on the next billing cycle 30 days after the receipt of PECO of such order.

“While we are pleased with this new order, our Contempt charge against PECO for not implementing the first order will be pursued.   In the ERC rules, a Motion for Reconsideration cannot stop a Commision's decision. We demand that PECO reimburse the consumers with the over-billings for its non-implementation of the first order,” added Ian Seruelo, FDC Secretary General and ICAW's Coordinator.