WRONG COMPUTATION: MORE Power debunks systems loss yarn

By Francis Allan L. Angelo

 

More Electric and Power Corp. (MORE Power), the new power distribution utility of Iloilo City, shot back at its predecessor, Panay Electric Company (PECO), for alleging that consumers are being made to pay for higher systems loss charges based on wrong computations.

MORE Power also slammed PECO for using its former employee, Jose Allen Aquino of the consumer group Koalisyon Bantay Kuryente (KBK), who claimed in a virtual press conference that the systems loss charges of MORE Power is 7.1%, which is much higher than the 6.5% cap set by the Energy Regulation Commission (ERC).

According to MORE Power spokesperson Jonathan Cabrera, the systems loss computation of KBK president Jose Allen Aquino was based on an incorrect formula which only considered the generation charge.

Cabrera said Aquino should also add to the mix transmission charges in computing the right systems loss charges.

If KBK’s formula is used to compute PECO’s February 2020 billing, it will appear that the latter firm’s systems loss charge is at 8.1%, much higher than what they alleged was MORE Power’s charge.

Cabrera also explained that since MORE Power took over electric power distribution in Iloilo City in February 2020, its systems loss charge was only about 6% and the firm plans to further lower it to 5.50% in 2021 and 4.75% in 2022.

Since 2018, ERC has set a systems loss cap that distribution utilities can charge on consumers, with anything in excess to be shouldered by the utility.

MORE Power said it decided to repair the entire distribution system infrastructure and facilities while also running after illegal connections or “jumpers” to lower systems losses and ease the burden on consumers and the firm itself.

The mudslinging between the two firms erupted when PECO accused MORE Power of incompetence what with the 412 hours of brownout from February 16 to July 16, 2020, the first five months of MORE Power’s operations.

MORE Power brushed aside the accusation as an “outright lie” since the city only had a total of 182 hours for that same period.

MORE Power president and CEO Roel Castro lambasted PECO’s “lack of professional etiquette” for coming up with clearly “manufactured lies and tricks to deceive the Ilonggo consumers and pull the city’s power supply service into chaos.”

Castro said they have been extending a “reconciliatory hand” to PECO in the last two years for the good of the Ilonggo consumers and the city in general, but the latter seemed intent on not cooperating.

“The relationship of MORE Power and PECO should not be viewed as a corporate war. MORE Power has nothing to do with PECO. We are here in Iloilo City not because we are after PECO, but we are after the sorry state of facilities here, plagued with complaints of poor service, customer case and high electricity rates,” Castro said.

Castro said it appears to be extremely hard for the PECO management to lose its almost hundred-year monopoly but “since they are in the business of public utility, personal interests and feelings have no place here.”

He said that more than anything, it is the welfare of the consumers and that of the city that should be foremost in their mind.

“There are consumers involved here. If PECO would only look at that perspective, then they really should give way. We respect and understand that what they’re going through is painful, but at the end of the day, it’s the court and the regulator that will decide on the matter. Whatever and whoever is affected should respect the decision,” Castro said.

PECO was stripped of its legislative franchise by Congress because of perceived poor services and complaints of prolonged brownouts as well as fires brought about by “dilapidated and out-dated” facilities.

Not long after the Congress hearings ended, the ERC cancelled its Certificate of Public Convenience and Necessity (CPCN) and the Iloilo City government revoked its business permit, leading to MORE Power’s assumption as the new electric power distribution firm of the city.