Thursday, August 09, 2007 Dads question request of Veco on other charges
THE Cebu City Council peppered Visayan Electric Company (Veco) with questions on its application to collect charges for certain services, which include requests for voltage correction.
While the application for “other charges” is not for a rate increase, as they are imposed only when these special services are rendered upon a customer’s request, the council questioned why the utility firm is passing on its responsibility to the consumers.
Appealing for “profit with a Christian conscience,” City Councilor Arsenio Pacaña lamented that Veco is already charging the people for services required of the company.
But Veco, in a presentation before the council in yesterday’s session, said that their other charges application is “merely a compliance to an ERC order.”
“The ERC rendered a decision dated Jan. 29, 2003 declaring, among others, that the revenues derived from the existing other charges of Veco were appropriately deducted from the determination of the revenue requirement allowed to Veco for purposes of establishing the unbundled rates, and ordered Veco to file for an approval of its other charges,” it said.
Reconnection
“But it is assured that services are triggered by customer requests,” said Ben Arkoncel, Veco assistant vice president for customer service.
The other charges Veco is asking the Energy Regulatory Commission (ERC) to approve are classified under meter, which include testing for P314.14 and reconnection for P1,079.21; power meters, which include “installation, primary instrument rated” for P4,035.93; service wire, bill and contract.
Also charged are distribution transformer, with servicing for P1,469.30, upgrading for P4480.34, and three-phase installation for P4,445.86; poles (primary post replacement: P5,728.40); wire (primary hotline works upgrading, P7,010.94); requests (voltage correction, P1,409.59); and other services, like thermal scanning for P16,552.11.
Among the other charges, voltage correction elicited the most discussion, as Vice Mayor Michael Rama and the councilors found it difficult to understand why Veco would charge consumers when requesting for help if there is under- or over-voltage, when it is not their fault.
Procurement
Ricardo Pardillo, Veco department manager for power procurement and regulatory affairs, said that requesting consumers would be charged only after it is established following an investigation that voltage fluctuation was at delivery point, or that the problem is on their end.
“(But) these will be charged only to the requesting customer who will be benefited by the service; (it is) non-recurring; not to be charged every month; charged only on a case-to-case basis. This will not be an add-on or an additional charge to the customer’s monthly billings,” Veco said.
Councilor Sylvan Jakosalem, head of the committee on utilities, said he will come up with a resolution for the City to provide copies of the minutes of the discussion to the ERC for its reference. (RHM)
