Cebu City schools runs up P7 M in power bills

About P7 million to P8.3 million worth of unpaid power bills by Cebu City’s public schools and a Department of Education (DepEd) building have yet to be settled by Cebu City Hall since last year.

Vice Mayor Augustus Young said the amount includes  P3.8 million for March and April this year.

Though the unpaid bill already exceeded the nine-day grace period,, Young said the city would not pay the surcharges worth P76,000.

Young said the payment of two percent penalty on surcharges for late payments is not allowed by the Commission on Audit (COA).

The city also lacks an appropriation for the payment of surcharges on their utility bills, he said.

Cebu City pays at least P10 million per month for its power consumption.  It allocated P90 million in 2011 budget for power.

A breakdown of the city’s active account consolidated by the Visayan Electric Co. (Veco) as of April 30, 2011 show that the city’s biggest consumption or 36.25  percent of its electric bill is for public schools.

Street lighting is second on the list at almost 30 percent while government offices constitute 22 percent.

The rest of the city’s power  goes to traffic lights, barangays, hospital and market operations.

Young said the unpaid bills would be paid from the surplus of Cebu City’s Special Education Fund (SEF) in 2010.

But Veco would have to wait until the 2010 book accounts are closed before surplus funds may be declared.

Young said the Local School Board meets tomorrow to declare their 2010 surplus of P10 million.

The vice mayor admitted that there are delays in the processing of payments.

He said the city government replaced its former budget officer and plans to hire 10 accountants to speed up payments.