PPC backs Peco power rate hike petition
PPC on the verge of collapse?
Lapus: Help save PPC
Iloilo -- Panay Power Corporation (PPC) is suffering the brunt of the recent Energy Regulatory Commission (ERC) ruling ordering Panay Electric Company (Peco) to reduce its rates by P2 per kilowatthour.
Because of this PPC is fully supporting Peco's petition for a rate increase in order to sustain its operations.
Arman Lapus, Vice President of Mirant Global Philippines, owner of PPC, was in the city Wednesday to seek support from the local government and the business sector with regard to the Peco petition.
In a press briefing, Lapus said PPC is having financial difficulty as a result of Peco's rate reduction since the latter could not timely pay its obligations with them.
PPC operates 72 megawatts diesel power plant in Brgy. Ingore, La Paz. Peco is the sole power distributor in the city and it buys power from PPC.
He said, Peco presently owes PPC P250 million. 'If this situation continues I'm afraid we would not be able to sustain our operations,' Lapus said.
Peco recently filed a petition with ERC for rate increase. ERC set the public hearing on December 6, 2:00 p.m. at the ATM Building in corner Ledesma and Jalandoni Streets.
'On our part going back to the old rate would be enough,' said Lapus referring to Peco's rate before the P2 per kilowatthour reduction.
Because of the ERC ruling Peco presently collects about P4 per kilowatthour, from the previous P6 per kilowatthour, from power consumers.
Lapus said the prevailing rate is very low and could hardly compensate the financial needs of the power distributor.
He however clarified that PPC merely supports Peco since they are partners in business.
'We are only after the good of the power consumers,' Lapus said.
'If time comes that oil companies would not supply us anymore with fuel because of our outstanding debts with them everybody will be affected, our plants would shut down, there will be no more power,' he added.
'We hope the public would understand our situation,' Lapus said.
Meanwhile, lawyer Romeo Gerochi of the Freedom from Debt Coalition assailed Peco for trying to hide the public hearing from the people of the city.
He said there was supposed to be a massive information dissemination on it as it involves public interest.
He lamented that he haven't seen any notice on the supposed public hearing and have learned about it only from media reports.
The News Today tried to reach Peco for a reaction but its spokesperson was not available at press time.
To note, Gerochi's continued crusade resulted to the ERC ruling reducing Peco's power rates by P2 per kilowatthour.