P0.32 power under recoveries to be implemented-A A +A
Wednesday, August 22, 2012
ILOILO CITY – The projected P0.32 power rate increase as under recoveries of the Panay Energy Development Corp. (PEDC) will be implemented and stretched in six to seven years and not within five years as directed by a decision of the Energy Regulatory Council.
The hike amount is less and not significantly felt by power consumers in this city, said President Arthur Aguilar of the Global Business Power Corp., owner of PEDC and Panay Power Corp.
Aguilar said they acknowledged and complied with the request of Iloilo City Mayor Jed Patrick Mabilog not to implement yet the under recoveries of some P692 million spent by PEDC in constructing the first coal-fired power plant here.
The City Government had filed a motion for reconsideration with the ERC regarding the projected power rate increase and its opposition against the multi-million peso under recoveries to be passed on to the power consumers here.
Aguilar assures stable and reliant power while the demand is projected to increase by more than five megawatts. But once the city reaches commercial operations, it is entitled to full commercial rate.
Iloilo City has some 80 megawatts power demand but the power supply is expected to zoom out as big commercial complexes such as Megaworld, Ayala and the airport of international standards fully operate next year.
Iloilo has no night market shift yet and there is a low demand and power off peak in the evening, but once big business complexes start operation in 2013, the power demand will increase, Aguilar said. (Lydia C. Pendon)