Over P2.5M Capitol bill awaits payment
Over P2.5million in overdue electric bill of the new Iloilo Capitol building remains unpaid as promised operation of the multi-million Capitol power substation continue to meet undisclosed delays.
The new Capitol, seat of the Iloilo Provincial Government (IPG), needs to immediately pay up the "amount due" of P1,217,876.39 in back overdue and P1,290,514.60 for the January billing as contained in Bill No. 505579. Total balance is P2,508,390.99 with last payment made back in December 19, 2006 in the amount of P1,280,062.62.
Panay Electric Company (Peco) is reportedly out to send a collector to the Capitol and sit down with concerned office chiefs here for a payment agreement. The News Today (TNT) learned that a Promisory Note would be asked in the event that the Provincial Government would have yet to settle the bill.
Since the new Capitol went full-swing in 2004, average electric bill consumption reaches the P1 million mark reason why construction of a power substation was pushed.
To date, over P13 million was known to have been spent for the project that met legal setbacks amidst objections raised by Peco. Capitol has since claimed 'victory' with the Energy Regulatory Commission (ERC) said to have given the IPG the go-signal yet in a 'test-operation' in December, technical problems arose. It was not immediately clear what caused the technical snag nor when the project will finally be operational.
Meantime, promised savings and stable power supply has yet to be realized, at least in P1 million in electric bill every month is served alongside the over P2.5 million in overdue bills.
Energy-saving measures have long been ordered in the building including the regulated use of the elevators and the use of the million-peso fountain by the Capitol main ground floor lobby.
ERC in its decision dated October 25, 2006 granted the provisional authority approving the Memorandum of Agreement (MOA) and Contract for the Supply of Electricity (CSE) between the Iloilo Provincial Government and National Power Corporation (NPC).
With the decision the provincial government could already operate the power substation which had been idle for more than two years already.
In earlier interviews Governor Niel Tupas, Sr. said the Capitol substation had long been completed but failed to operate because of the opposition filed by Peco, the city's exclusive power distribution franchisee, with the ERC.
In its decision favoring the MOA, ERC cited Republic Act 6395 allowing city, municipal or provincial system and other governmental institutions to obtain bulk power supply from NPC through direct connection.
In its position filed with the ERC, the Iloilo provincial government stated that it could save about 1/3 of what it is presently spending for the payment of electric bills if it gets power directly from NPC.
The provincial government would use the sub-transmission lines of the Philippine Foremost Milling Corporation (PFMC), located some meters away from the Capitol, in connecting to the nearest NPC plant.
To note, PFMC and Peco first embroiled in a legal battle for the former's bid for a direct power connection with NPC.
PFMC faced opposition from Peco saying direct connection to NPC and Transco is a blatant violation of laws and regulations and prejudicial to the general interests of the general public.
Specific of Peco's objections were that direct connection as supposedly allowed under the Electric Power Industry Reform Act or EPIRA Law has been modified and it will cause gross financial loss to Peco.
The objection also carried the clear objection as it pointed out that with the Foremost's direct connection comes the link with the Iloilo Provincial Government "contrary to law and prejudicial to public safety." Further still, Peco maintained, "the set-up would allow an end-user to become and act as an electric distributor itself," and the "set-up will ultimately hurt the customers of Peco in general."
ERC in resolving the case granted the direct connection as it ordered Peco to cease and desist from preventing Foremost in pursuing its planned installation.