P34 million used to buy power, Veco says

THE cost of repair and re-installation of the Visayan Electric Co.’s (Veco) damaged 100 MW transformer is not part of the add-on cost proposed by the utility for inclusion in monthly bills of consumers in its petition with the Energy Regulatory Commission (ERC).

During yesterday’s press conference, Sebastian Lacson, Veco senior vice president and chief operations officer, said the P34 million cost stems from Veco’s purchase of power to offset the supply deficit to consumers.

Lacson said today’s Cebu City Council hearing will discuss Veco’s capital expenditure (CAPEX) proposal that’s also related to the transformer’s repair.

“The CAPEX that we filed with the ERC is non-cost while the other petition that we filed in September last year concerns the recovery of the costs that we incurred due to the damaged transformer,” Lacson said.

Lyndon C. Jayme, Veco asst. vice president for utility economics department, said Veco wanted to recover the cost incurred in purchasing power from East Asia Utilities Corp. based in Mactan.

Veco said they bought power to offset a 20 megawatt deficit in their system used to supply their Cabancalan, Banilad, Waterfront, Ayala and Camputhaw substations.

Veco incurred P34.2 million in additional cost from May to July last year when it sourced power from East Asia Utilities Corp.

“We had no choice but to source the 20 MW power from them even with the higher cost because they generate power through diesel. They are the only one that can supply power directly to our Mabolo substation,” Jayme said. Lacson said they will send representatives to the public hearing.