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Peco OKs rollback, warns of 'dark ages'
Gerochi dangles sabotage suit

Panay Electric Company Inc. (Peco) has agreed to rollback their power rates, but is threatening of “...the possibility of a blackout in the city” because of the lowered cost of electricity.

Gerochi

Consumer advocate, lawyer Romeo Gerochi however was quick to warn the power firm that it stands the risk of being sued for economic sabotage.

Peco's decision to lower its rates is in compliance with the order of the Energy Regulatory Commission for the firm to rollback its power charges by P2 per kilowatt/hour.

“Since the ERC has ruled over this unbundling case with finality, we will have no choice but to implement the new rates effective immediately (June 2005 billings) if we cannot get a TRO or an injunction from the Court of Appeals (CA),” Edmund Afzelius, Peco's Senior Vice President for Operations, said in a three-page statement.

Afzelius further explained that that “...rate unbundling also resulted to reduction in the generation charge being collected. The ERC has pegged the generation charge component of our unbundled rates to that of NPC. If implemented, this means that we will be paying out independent power producer an amount lower than what they need to cover actual cost of operations...If they could no longer sustain their operations and provide us with power, then PECO will have no power to sell and therefore a blackout is expected to hit the City.”

Mirant Global Philippines, which has a plant in Brgy. Ingore in LaPaz, supplies 98% of power which Peco sells to its consumers. Peco generates the remaining 2%.

Consumers' 'marshalls'

Gerochi, who fought the lonely battle for the reduction of the power rates, also said that will station some personnel in front of Peco's office to guide the consumers should the firm's employees will not heed to consumers request to recompute their monthly electrical bill.A form that signifies the consumers' willingness to file a class suit against the electric company will be distributed to the consumers.

For his part, Mayor Jerry Treñas said that Peco could not just discard the terms and conditions stipulated in their franchise as utility provider of the city.

They could not just immediately cut short their power supply to the city and cause black out, the mayor said.

The ERC is a quasi judicial body and PECO should abide with the decision when it's already final and executory. “They could be cited for contempt,” Treñas added.

The mayor said the city is also entitled for a refund if the decision is already final and executory. The city spent P5.2 million to P5.6 million for the electricity bill alone.

SP resolution

At the Sangguniang Panlungsod, a unanimous resolution was approved during last Wednesday's regular session urging Peco to immediately implement the ERC's

decision. At first the resolution was authored by Councilor Armand Parcon but later it was decided that it would be better if they came up with a unanimous resolution. With Ronilo L. Pamonag