PECO says its rates ‘competitive’, accuses MORE of spreading false information

Panay Electric Company, Inc. (PECO), the sole power distributor in Iloilo City, defended itself against claims that its rates are much higher compared to other electric distribution utilities (DUs) in the country.

In a statement, PECO asserted that its rates are “competitive.”

The power distributor said from January to September this year, its residential rate was P11.64 per kilowatt hour (kWh), lower compared to the Iloilo Electric Cooperative I’s (ILECO I) P11.98 per kWh, and Visayas Electric Company’s (VECO) P11.78 kWh.

The rates, according to PECO, were taken from the actual bills issued by the DUs over the last nine months to their respective consumers.

“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,” PECO said.

In 2017, PECO’s overall average rate, which includes the residential, commercial and government rates, was around P10.50 per kWh. This year, it went up to P10.90 per kWh.

“That’s lower than many other DUs in the country. The increase in 2018, which isn’t only unique to PECO but many other electric distribution utilities, is due to the rising fuel and coal costs in the country,” PECO said.

“Of course if you compare any other DU in the country to MERALCO’s overall average rate, no one can compete except for the economic zones due to the volume of industrial customers MERALCO has. To say that a non eco zone DU in the Philippines has a lower overall average rate than MERALCO is already false when you factor in their thousands of industrial customers. If you just compare fairly to residential and commercial rates, PECO can definitely compete with all the DU’s in the country,” it explained.

PECO accused Monte Oro Grid Resources and Energy Inc (MORE) of spreading the false information “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,” it said.

PECO and MORE are competing to get the legislative franchise for an exclusive power distribution business in the highly urbanized city.

SOURCE: Iloilo Metropolitan Times

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