Generator, distributor to issue statement on power rate hike-A A +A
Tuesday, June 19, 2012
BOTH the power generator and sole distributor in Iloilo City will issue a joint statement this week regarding the approved increase in power rate issued by the Energy Regulatory Commission (ERC) recently.
Engr. Petronilo Madrid of the Panay Energy Development Corp (PEDC), owner of the first coal-fired power plant in the city, and Engr. Randy Pastolero of Panay Electric Co. (Peco), the power distributor, confirmed that ERC approved the power under recoveries of PEDC amounting to some P692 million.
Madrid said that most likely, the amount will be passed on to power concessionaires and consumers estimated to be P0.33 per kilowatthour.
Several consumer groups in the city protested the under recoveries to be passed on to consumers, saying PEDC and its mother company, Global Business Power Corp., are investing in the power generation industry, which must shoulder the cost of their reported capital cost under recoveries.
The All Pinoy Volunteers said the corporations have already recovered and gained more than enough of its investments in the coal-fired power plant, since they have no competitor in the city.
Acting City Mayor Jose Espinosa III said he will confer immediately with the city legal office on the stages of City Government appeal to the ERC.
The City Government also posted its opposition to the projected power hike of PEDC and Peco on the grounds of unjust and unreasonable reasons.
Espinosa said he wanted to bargain with ERC for a longer time of hike implementation, which PEDC say will appear on the June billing of consumers. (LCP)