Consumers should matter in distribution utility shift

By Francis Allan L. Angelo

Consumers should take centerstage in calls for Iloilo City’s power distributor, MORE Electric and Power Corp., to expand its franchise areas to towns in Iloilo province which are served by electric cooperatives.

Iloilo Gov. Arthur Defensor Jr. said in his weekly press conference Thursday that electric cooperatives should explain the pricing of their electricity apart from purported subpar services.

Several local chief executives in Metro Iloilo towns earlier toyed with the idea of urging congress to allow MORE Power to serve their towns despite being in the franchise area of Iloilo Electric Cooperatives I and II.

MORE Power’s electricity rate of P6.45 per kilowatt-hour is 41 percent lower compared to the rates of electric cooperatives in the province.

Defensor said he does not exactly know how a locality or group could transfer from one distribution utility to another, but if the main issue is the price, Ileco I and II should be given the chance to explain their rates.

“It’s good to put in perspective how electricity prices are determined. I spoke to the manager of Ileco and he explained how it works. The price of power is dynamic from the generator, retail, to the household. Generation influences prices in the retail level. It’s better if consumers know about it as it can be explained,” he added.

Defensor also cited that the power sector is a heavily regulated sector that observes certain processes.

“Let it go through regulation. If a utility can no longer comply with its franchise under the law, maybe it can change but may process. Indi basta-basta maghalin because it is a highly regulated sector. Importante ma intyendihan ang dynamics of the price. Different utilities have different prices. Ang importante is the consumers are served well,” he said.

As to petitions calling for MORE Power’s expansion to the province, Defensor said it should be referred to the proper regulatory body which will summon all concerned parties.

“Importante ma-explain lang and if there is a need to take steps to promote the best interest of the consumers, it can be done. The consumers are the most important of all,” he said.

As to the Capitol’s decision to draw power from MORE Power, Defensor said it was more for technical reasons as the distribution lines of their previous supplier is no longer available. He also cited the fact that the Capitol is within the franchise area of MORE Power.