Power distributor announces cut in charges next month
Electric distribution utility, Panay Electric Company (Peco) will cut down its charges starting next month to reflect the decreasing trend in the global oil price.
At the same time, however, Engr. Randy Pastolero of Peco announced that the distribution utility still has to recoup a certain amount they withheld collecting from its consumers corresponding to the sharp increase in oil prices from July-August this year.
"Definitely, in December, there will be a reduction in the power charges because of the downward trend (in global price of oil)," Pastolero announced in a press conference yesterday.
Peco distributes power to Iloilo City. At P13.80 for every kilowatt-hour, Peco's power rates are considered the highest in the country.
He declined to give an estimate of the reduction, saying it is "too premature."
"But," he stressed, "if oil prices dip to 2007 levels, consumers will see a reduction of up to P2 per kilowatt-hour."
Peco sources most of its power from Panay Power Corporation (PPC), an independent power producer, and a small part from the National Power Corporation. PPC uses diesel oil and bunker fuel for its generators.
In July to August of this year, world crude prices increased sharply, and went on a steady decline from then on. But the impact of any increase or decrease in the world oil prices is felt by the consumers about two months later, Pastolero explained.
Because of the increase in the price of oil, PPC's charges were P1.30 higher. According Engineer Adrian Moncada, Assistant Vice President of PPC, any increase or decrease in the prices of fuel is passed on to Peco at no additional cost. Peco, in turn, passes this on at no additional cost to the consumers. They have already billed Peco of this, but the latter has not yet paid them.
Because of the increase in oil prices, Peco could have increased its generation charges to as much as over P10 from its present rate of P9.23, but did not, Pastolero said.
However, Peco opted to intervene and chose not to immediately pass this on to the consumers, he added. Now that there is a downward trend in global oil prices, we will be recouping this amount from the consumers, Pastolero said.