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Tuesday, May 24, 2005
Power firm's motion nixed, told to cut rate
By Jay Dooma Balnig and Lory Ann B. Bilbao
ILOILO CITY -- The Energy Regulatory Commission (ERC) denied Panay Electric Company's second motion for reconsideration on an order directing it to unbundle and reduce its rate by P2 per kilowatt-hour.
The commission said in an order dated April 25 that the power firm's second motion "is denied with finality". The energy body also ordered the implementation "without delay" of its May 19, 2004 and January 19,2005 decisions or appropriate sanctions would be imposed.
The first decision refers to the unbundling and reduction of Panay Electric's power rate while the second, the denial of the first motion for reconsideration.
Attorney Romeo Gerochi, chairperson of Freedom from Debt Coalition (FDC)-Iloilo, said since the order is already final and executory, Panay Electric has no choice but to reduce its per-kilowatt-hour rate from P7 to P5.
In its May 19, 2004 decision, the energy body ruled that Panay Electric should reduce the rate for residential consumers from P7.0743 to only P5.0751 per kilowatt-hour.
This means that a household consuming 192 kilowatt-hours of electricity each month will now pay only P974.72 instead of P1,358.27 or a difference of P384.
Gerochi said during a press briefing on Monday that Panay Electric should have started reducing its rate on July 2004 or 30 days after it received the energy body's order. The lawyer also advised consumers to ask Panay Electric to compute anew their power bills.
FDC-Iloilo and the Iloilo Consumers Advocacy and Welfare (Icaw) were the main intervenors in Panay Electric's application for the unbundling of rates.
In its latest order, the commission said it found Panay Electric to be "forum-shopping." The fact that Panay Electric already filed with the Court of Appeals a motion for extension of time to file petition for review on the certiorari "is a clear indication that it has abandoned any possibility of filing a second motion for reconsideration with the commission."
The commission added: "Undeniably, the CA has assumed jurisdiction when it granted Peco's motion for extension of time to file a petition for review."
"It is noteworthy to point out that the 'Notice of Withdrawal of Petition' filed by Peco with the CA has not yet been acted upon at the time Peco filed its second motion for reconsideration. This without a doubt comes within the purview of forum-shopping which is a ground for the outright dismissal of the case," the commission's order said.
Gerochi said there is no remedy for Panay Electric with the Appellate Court or the Supreme Court.
"They should refund the consumers starting July 1, 2004 when the decision took effect otherwise sanctions will be imposed," he said.
FDC-Iloilo earlier said the rate reduction is the result of the energy body's exclusion of several items that Panay Electric included in its petition for higher rates.
In its petition, the power distribution utility included cost items, assets and machinery not related or directly used in providing service to consumers.
Panay Electric assets disallowed by the energy body totaled P66.684 million, including its property along Diversion Road amounting to P51.015 million, building and improvement of its J.M. Basa office, P3.886 million, and machinery and equipment, P7.135 million.
(May 24, 2005 issue)
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