City files motion for recon on power hike-A A +A
Friday, June 29, 2012
THE Iloilo City Government through the city legal office filed on Friday, a motion for reconsideration with prayer for deferment to the Energy Regulation Commission (ERC) on the implementation of projected P0.32 per kilowatthour increase filed by Panay Energy Development Corp (PEDC).
The power rate hike is expected to pay the P692 million under recoveries incurred by PEDC for its testing and commissioning of the first coal-fired power plant in Iloilo City.
Power distributor Panay Electric Company (Peco) is willing to wait for the return of City Mayor Jed Patrick Mabilog from a study trip in Canada to submit a formal letter of intent to Peco regarding the deferment of the hike.
Earlier, Mabilog said the power rate hike will affect the business sector and city residents. Investments will also be threatened.
Peco also announced it may reduce by P0.34 per kilowatthour in deference to the ERC order due to higher power demand in the city.
The ERC decision stemmed from the rate case filed by PEDC and Peco for the approval of their power supply agreement. The ERC ordered PEDC to collect for a period of at least five years an additional P0.32 pkwh starting August 2012 to mitigate the impact of under recoveries on the consumers,. (Lydia C. Pendon)