P90M debt imperils Iloilo City electric supply

ARTIST’S rendering of the Iloilo Convention Center FROM ILOILO BUSINESS PARK

ILOILO CITY—The city, which is preparing to host several meetings of the Asia-Pacific Economic Cooperation next year, is unable to pay close to P90 million in electric bills and may lose its power connection if these remain unpaid.

The arrears, which include P26 million in unpaid bills in 2013, will reach P88 million by Oct. 27, according to Mikel Afzelius, corporate communications officer of the Panay Electric Company (Peco).

The city government has approved a supplemental budget appropriating P5.2 million as partial payment for its electric bills.

The arrears P36.3 million in electricity used for streetlights, P10.6 million for offices and P23.6 million for markets. Only accounts for electricity use of city schools have been paid, according to Afzelius.

“We had wanted a full settlement this year but the city said it could not afford to do so,” Afzelius told the Inquirer.

He said Peco already offers the city government the cheapest rates compared with residential and commercial clients.

Peco will be forced to cut off supply if the arrears continue to increase and remain unsettled.

“We don’t want to stop supplying the city and Peco is working with officials to resolve the issue,” Afzelius said.

But he said the firm is also pressured by power suppliers to pay promptly.

Peco is the city’s lone power distributor and services 53,000 households, commercial establishments and offices. Its electricity is supplied by the Panay Energy Development Corp. and Panay Power Corp., both under the Global Business Power Corp.

Afzelius said Peco has to tap on its reserves to cover arrears of clients, including the city government.

This affects Peco’s projects including the upgrading of facilities and the ongoing transfer of hundreds of electric poles affected by road-widening and other infrastructure projects.

The city government recently approved a 30-percent increase in real property taxes effective next year despite opposition from business and consumer groups.

Mayor Jed Patrick Mabilog earlier appealed for the increase saying additional revenues were needed by the city government to fund projects and programs.