PECO system improved but…

PANAY Electric Co personnel work on power lines in La Paz, Iloilo City. A Singapore-based firm said PECO has improved its network system in the last eight years but service to its franchisees lags compared to other distribution utilities in the country. (File)

THE services of Panay Electric Company (PECO), Iloilo City’s sole distribution utility, have significantly improved in the last eight years, according to a study conducted by a Singapore-based firm.

In a press statement, the Iloilo Economic Development Foundation (ILED) said it received a final report of the study done by professional services consultancy firm WSP on the state of PECO’s distribution network.

ILED is an umbrella organization of business groups, leaders, and companies that seek to promote the city and province of Iloilo as investment hubs.

The study, however, did not cover the customer service aspects of the distribution firm.

The WSP 2018 report concluded that:

• PECO’s network performance has improved significantly since 2010

• while it improved, the service PECO provides to its franchisees lags behind what distribution utilities (DUs) in key Philippine cities – Metro Manila, Cebu, Davao – provide. The gap widens even more when comparison is made with DUs in the ASEAN region

• recommendations made in 2010 have been implemented but not in full.

WSP further recommended that PECO should seek to narrow the gap and enable a world-class electricity distribution service to Iloilo City.

WSP visited the facilities of PECO on April 16 and 17, 2018 to check whether the firm followed the recommendations they made during their first study back in 2010.

ILED executive director Francis Gentoral said the study is crucial as “it offers an independent, objective, and global view of PECO’s network performance and the quality of its asset and system platform.”

“ILED, in line with its mission to promote Iloilo as a preferred investment destination, emphasizes the urgency for world-class and not just better electricity service. In this regard, it seeks for the full and immediate implementation of the recommendations as set forth in this WSP 2018 report, recognizing that what the report recommends are just the minimum steps a distribution utility should take to serve its stakeholders,” he said.

“ILED therefore expects significant investments, steadfast commitment, and enhanced capability for quality power service delivery, as the fundamental bases for making the crucial choice for Iloilo’s energy-secure future.”

In an official statement, PECO expressed appreciation on the study commissioned by ILED to help the firm in having better reliability.

The firm said its improved system reliability can also be seen in the records of the Energy Regulatory Commission.

“There may be certain aspects that have not yet been implemented in full but they are nonetheless being implemented phase by phase and will soon be completed,” the firm said.

PECO countered that while Iloilo City is experiencing fast growth rate, it does translate to similar equals economic returns in key cities such as Manila, Cebu, and Davao.

“As stated in the statement of ILED, PECO is being compared directly to these so called key cities. To be fair, it will take years of consistency in our economic growth rate in order to catch up to these three key cities if we want to have the same actual economic returns in terms of actual pesos being contributed to the Philippines,” PECO said.

NEW PLAYER

Meanwhile, the firm also urged ILED to carefully look into the issue of More Minerals Corporation (MMC) which is applying for a franchise to distribute power in Iloilo City.

PECO said the said the other player allegedly “has no experience in the business of power distribution” and “no track record to show since they are a mining company as stated in their articles of incorporation.”

“We also urge ILED, as one of the leading business groups of the City, to look into this matter since definitely almost all businesses will be affected negatively if we do not carefully study this.

If we want to have the same actual economic returns just like Davao, Cebu and Manila, we must be vigilant about this since we are already currently in the right direction for further progress and it would be a huge opportunity lost for all Ilonggos if all this progress will stop,” PECO said.

SOURCE: The Daily Guardian

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