ERC asked to reconsider PPA that will raise power rate in Iloilo | Inquirer News

ERC asked to reconsider PPA that will raise power rate in Iloilo

/ 08:41 PM October 09, 2011

ILOILO City—The Iloilo City government has asked the Energy Regulatory Commission (ERC) to reconsider its approval of a power purchase agreement that will raise electricity rates in this city by P3.20 per kilowatt-hour (kwh).

In a four-page motion for reconsideration filed by city legal officer Jose Junio Jacela on October 4, the city government petitioned for revisions in the approved electric power purchase agreement between the Panay Electric Co. (Peco) and the Panay Energy Development Corp. (PEDC).

The petition asked the ERC to peg the computation of the cost of investment of PEDC in constructing and operating the 164-megawatt coal-fired power plant with the cost of other coal plants in the country.


The city government also asked the ERC to lower the energy consumption cap after which consumers can avail themselves of a lower electricity rate.


The petition stressed that the city’s minimum consumption of 427,050,000 kwh is way below the 772,632,000 kwh pegged by PEDC in the power purchase agreement.

The increase will be reflected in the October bill of consumers.—Nestor P. Burgos

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TAGS: Energy, power rates, Regions

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