Lawmaker hits power firm’s ‘blackmail’ attempt

A LAWMAKER criticized as uncalled for the attempt by the controversial utility firm Panay Electric Co. (PECO) to blackmail Congress into granting it a franchise with a threat to plunge Iloilo City into a citywide power blackout.

Paranaque Rep. Gus Tambunting said PECO legal counsel Inocencio Ferrer was wrong in threatening to cut off the operation of PECO and cause citywide blackout in Iloilo City.

In a statement, Tambunting said “it is not the fault of Congress to grant the franchise for distribution utility in Iloilo City to another company because Congress has to choose the company that can best serve the consumers.”

“Congress has decided to give the franchise to another company. A franchise is a privilege granted by Congress. We have testimonies of how PECO has been inefficient through the years,” he added.

He noted that Congress received all the complaints filed over the years by Iloilo City consumers against PECO’s penchant for overbilling its customers, the dilapidated transmission facilities like old leaning electricity poles that endangered residents, the low quality of public service.

PECO employees also complained to Congress of the company’s failure to pay overtime salary while an employee, Guadioso Arnejo Sumandi, complained to President Rodrigo Duterte in his 8888 Citizens complaint number that PECO employees had to pay for repair materials because the company had not been buying repair materials for the past two years.

Tambunting also criticized the failure of PECO to send anyone to the meeting of the Technical Working Group (TWG) created by the Senate Committee on Public Services chaired by Sen. Grace Poe.

The TWG was to take up the transition plan for the takeover of PECO’s operation by the new utility firm, MORE Electric and Power Co., which was granted the legislative franchise by the Senate and the House.

PECO should also know better than to threaten Congress and the national government to plunge Iloilo City into a power blackout, Tambunting said.

“PECO knows what Congress can do if they refuse to comply,” he added, as he stressed Congress could order the police and other law enforcement agencies to arrest PECO officials to compel them to participate in the preparation of the transition planning process of the Senate TWG.

“The power of Congress to exercise its functions cannot be held hostage by their refusal to participate in the TWG. Government also has the power of eminent domain. Article III, Sec. 9 of the Constitution says ‘(P)rivate property shall not be taken for public use without just compensation. Government can choose to exercise its power of eminent domain if they refuse to comply,” Tambunting added.

FALSE INFORMATION

In a statement, PECO debunked false information that its rates are much higher when compared to other electric distribution utilities (DU) in the country.

PECO’s average residential rate over the last 9 months from January to September 2018, excluding lifeline subsidies, is P11.64 per kilowatt per hour (kWh).

On the other hand compared to its neighboring utilities and the top two largest Distribution Utilities in the country over that time period, ILECO 1’s residential rate is 11.98/kwh; VECO, P11.78/kwh; and MERALCO, P11.61/kwh.

PECO’s residential distribution charge of P1.75/kwh is also competitive when compared to MERALCO (P2.98), VECO (P2.86) and ILECO 1 (P1.61).

“These were taken from actual bills of the respective consumers from each of those electric distribution utilities over the last 9 months of 2018. We have to present facts and not just false information as compared to other news that came out which don’t have basis when stating the rates,” the PECO statement added.

PECO also blamed rival firm MORE Power of spreading the misinformation.

“MORE (Power) is spreading false news to side track the Ilonggos in Iloilo City from the real threat that is to come. Big investors would not have invested in Iloilo City if the rates were not competitive in the first place. Businesses like Megaworld, Ayala, Gaisano, Fil Invest, SM and others in the same league are quite comprehensive in their research when they decide to invest.

What Monte Oro (MORE) is doing is spreading fake news to side track the attention of their blatant rail roading and aim to grab private properties in the City,” it added.

SOURCE: The Daily Guardian

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