City gov't to oppose Peco's petition for rate increase
City Mayor Jerry Treñas said he will oppose the plan of the Panay Electric Company Inc. (Peco) to increase its power rates anew saying it is already too much for the electric consumers.
Treñas said he has already instructed Atty. Edgar Gil, chief of the City Legal Office to prepare their opposition and secure all records from the Sangguniang Panlungsod in Peco's bid for a rate increase.
The same petition for rate increase is now pending before the Energy Regulatory Commission (ERC). Peco's move for another rate increase is not just questioned by the ordinary consumers but also by the business sector.
Peco submitted to ERC the application for authority to increase its distribution, supply and metering charges, with a prayer for provisional authority.
"An increase in Applicant's rates is necessary for it to achieve its proposed revenue requirement," Peco cited in its petition.
Treñas said they have supported Peco in urging the National Power Corporation (Napocor) to amendment their existing Non-Firm Power Supply Agreement but not with the former's plan to increase power rates.
The mayor even lobbied with ERC and Napocor over Peco's Non-Firm Power Supply Agreement with the latter. The agreement allows Peco to buy power supply from NPC. However, the same agreement only mandates the NPC to provide power supply to Peco during off-peak hours.
The NPC only based their load capacity and availability in the contract they have signed with PECO. Part of the contract states that "this agreement is for the sale of NPC unutilized electric energy from its Geothermal Power Plants in Leyte and Negros Oriental on as available basis."
Based on Peco's records, the NPC provided 5 to 10 megawatts of power to Peco but only on off-peak hours which starts from 1:00 a.m. until eight in the morning.