Monday, February 19, 2007 City Hall eyes cheaper power By Danilo V. Adorador III
THE Cagayan de Oro City Council said cheaper electricity may be possible by sourcing energy directly from the government-owned transmission firm and bypass distribution utilities.
But whether that suggestion has legal and practical basis is a question that will be answered Monday by Virgilio Sanchez, manager of National Transmission Corp. (Transco) in Cagayan de Oro City.
Councilors have invited Sanchez to find out whether Transco, a government-owned and controlled corporation that handles electrical transmission functions, can directly supply power to some of the city's clustered barangays.
The city government has been at odds with the Cagayan Electric Power and Light Company (Cepalco) in a string of disagreements over its electric rates -- the latest of which is Cepalco's alleged overcharging of the Currency Exchange Rate Adjustment (Cera). Cepalco, however, denies the allegation.
Exploring a way to cut Cepalco out of the distribution loop is seen as retribution against the local electric firm.
The city government sees Cepalco as unwilling to cooperate since Cepalco has snubbed twice the council-led inquiry on the Cera issue.
Last week, the councilors threatened to block the company's business permit renewal on the grounds of its alleged unfair business practices -- an allegation also denied by Cepalco.
A direct electric supply from Transco means lower cost for end-users, councilors argue.
However, it is not clear whether Transco is empowered to directly sell electricity to small end-users such as in the barangays -- a process that may harm a distribution utility's business interest.
But Section 22 of Republic Act No. 9136, otherwise known as the Electric Power Industry Reform Act (Epira), says local governments can distribute electric power to all end-users, along with private distribution utilities and cooperatives.
