By Francis Allan L. Angelo
A group of power consumers in Iloilo City said the tussle between Panay Electric Co. (PECO) and MORE Electric and Power Corp. (MORE Power) and the confusing actions of the Energy Regulatory Commission (ERC) puts them at a disadvantage
In a statement, i-Konsumidor, a broad alliance of consumer and progressive groups in the city, said the ERC letter on MORE’s “takeover” of power distribution services raises more questions than answers.
The group will hold a press conference today, Mar 10, at Y2K Restaurant in Diversion Road to expound on their points through lawyer Romeo Gerochi.
For one, the group questioned if MORE Power has power supply agreements (PSA) with generators and if the PSAs went through the ERC process.
Granting that MORE Power has applied for or even sealed PSAs with power generators, i-Konsumidor asked if the Iloilo City government has received any notice about its application.
The group noted that normally, it would take at least 75 days for ERC to hear and issue a provisional authority to distribution utilities so that they can enter into PSAs. The issuance of the final authority will take at least a year.
Upon filing of the application for provisional authority, the ERC has 10 days to issue an order and notice of public hearing. The earliest day of the hearing would be 30 days from receipt of a copy of the application by the LGU or Legislative Body or publication of the application, whichever comes later.
After the hearing, the provisional authority can be issued 4 days after the hearing until the 74-day period is exhausted.
Why is the PSA important?
i-Konsumidor said the PSA will become the basis for MORE’s billing to the consumers 57 days after Feb 29 or the day after it took over PECO distribution assets.
“MORE is running the facilities but PECO is the one who has contracts with generators. These contracts cannot be assigned to MORE or MORE will even assume the contracts. If MORE will start billing us after two months, what will be the basis of their rates? We don’t know because there was no application nor did we attend or even learn of any public hearing on their application for provisional authority to enter into a PSA,” the group said.
The group said it is important that they have an idea of the rates, especially the minimum energy off take or the minimum quantity of power MORE will buy from generators which will surely affect the price of electricity.
DATA PRIVACY, REFUNDS
i-Konsumidor also raised the issue of data privacy in turning over the consumers’ records from PECO to MORE.
The group said PECO cannot just release the data or records without the expressed permission of the consumer-owner.
“PECO can be held liable if they release our data to another party sans our permission. And if MORE already has the data, where did that come from? If it was leaked, then they are liable for violating data privacy laws.”
i-Konsumidor said ERC must also resolve their refund claims against PECO which is estimated at more or less P600 million, which includes meter deposits, trust funds, among others.
While PECO claimed that it has returned parts of the amount, i-Konsumidor said they are still awaiting final audit by ERC.
“We must take note that MORE Power’s franchise in Republic Act 11212 provides that PECO must first settle its obligations to the consumers before wrapping up its operations. We cannot rely on MORE because it is not bound to settle such obligations to us when it eventually takes over the distribution services,” the group added.
i-Konsumidor lamented that the ERC was fast in issuing a letter about the certificates of public convenience and necessity of PECO and MORE Power but it is dragging its feet on the consumers’ refunds.
“ERC wants the consumers to swallow whatever rates MORE will charge on us and at the same time we are left hanging with the refund. The commission ought to have resolved the refund issue before attending to the business interests of PECO and MORE.”
With MORE placing the value of PECO assets at more than P400 million, i-Konsumidor said it appears that the consumers actually own the assets as they already paid for it.
“Maybe MORE sued the wrong party. If we agree with their valuation and by using that yardstick, it appears that PECO owes us. Ergo, the real owners of the assets are the consumers,” the group said.
The group said they don’t care who runs the power distribution services as long as their questions are answered.
“We just want the process to be followed. We have been waiting for the ERC decision on the refund issue but to no avail. But in the case of the two power distributors, the commission is amazingly fast. What we have right now is a letter from ERC chief Agnes Devanadera, but we have not seen the resolutions,” it added.
