Monday, August 06, 2007 Veco seeks approval for rate hike
POWER distributor Visayan Electric Co. (Veco) has applied for the adjustment of the rates for some services; but whether it’s a decrease or an increase, the Cebu City Council doesn’t know yet.
The council invited Veco officials to their regular session this Wednesday to explain what adjustments will be made, and how this will affect the consumers.
Last July 20, Veco requested the council to certify that it has received a copy of their petition for their “Application for approval of other charges with prayer for provisional authority.”
A Veco official said yesterday that there will be an increase in the charges for certain services, but it will not affect the transmission, generation and distribution of electricity.
The utility company intends to file the application for the adjustment of certain charges with the Energy Regulatory Commission (ERC).
But the council decided not to issue the certification until Veco can explain to them what the rate adjustment is.
“They only said it’s a rate adjustment so whether it’s a higher or lower for electricity, or by how much it will be increased or decreased, we don’t know that yet. We will ask them to brief us on that and what its impact on the consumers will be,” said Councilor Sylvan Jakosalem.
Jakosalem, chairman of the council committee on energy, said they want to know details of any rate adjustment, especially after Meralco announced that they will lower the rates for electricity in Manila.
Confirmed
Veco officials have already confirmed that they will attend this Wednesday’s session.
In a phone interview yesterday, Veco spokesperson Ethel Natera said they have applied for rate adjustments but only for certain services, including the installation of transformers and transfer of meters.
“There is no rate increase. We were just required by ERC to make some charges and it’s not only Veco. It’s true for all utility companies in the country. But it will not affect the transmission, generation or distribution rates,” Natera told Sun.Star Cebu.
Instead of holding an executive session on the matter after issuing the certification, the council agreed last Wednesday to discuss the matter with Veco first before a certification is used.
The certification that the council has received a copy of the petition is a requirement for the filing of the application for rate adjustment. (LCR)
