City to appeal power rate hike
Better late than never.
This could well describe the move of the City Legal Office (CLO) after the Energy Regulatory Commission (CLO) approved the application for rate increase of Panay Electric Company (Peco).
CLO chief Atty. Edgar Gil yesterday said they will a motion for reconsideration with the ERC relative to Peco's rate increase.
ERC in its decision dated October 24, 2007 approved a power rate increase filed by Peco at P0.990 per kilowatt hour for residential consumers and P0.2250 for commercial consumers.
The same ruling also approved the increase in the demand charge of P30.2150 / kilowatt demand.
It was noted in the ERC decision that not a single official from the city government was present during the hearings "nor was there any intervention/opposition registered."
Gil claimed they did not receive communication or invitation from the ERC pertinent to the said hearings.
Gil said they will file their appeal next week.
"It will be up to the ERC to appreciate our arguments," he said.
Earlier, Peco management issued a public notice announcing the approval of the rate increase they asked from ERC.
Engr. Randy Pastolero, Assistant to the President of Peco, said the new rate will reflect on the electric bills of consumers in Jaro and La Paz district by the end of December.
The implementation of the new rate in other districts will follow.
Peco, in applying for rate increase, reasoned that it will be used for electric distribution capital projects to improve their services.
It was learned that the approved increase in Peco's distribution charge is the first in 18 years. A source said all the other previous increases in power rate went to power generators Panay Power Corporation and National Power Corp.
The decision was signed by ERC chairman Rodolfo Albano Jr., and Commissioners Alejandro Barin, Maria Teresa Castañeda, and Rauf Tan.
"A perusal of the evidence presented therein showed that the completion and acquisition of the aforesaid projects will redound to the benefit of Peco's consumers in terms of continuous, reliable and efficient power supply" mandated by law, the ERC decision said.
The ERC cited Section 2(b) of the Electric Power Industry Reform Act of 2001 (Republic Act 9136) which provides "to ensure the quality, reliability, security and affordability of the supply of electric power and will strengthen its social commitment to its consumers, thereby promoting public interest."