Consumers brace for hike; Veco says ‘don’t blame us’
Power consumers in Metro Cebu are preparing for the impact of the P1.00 per kilowatt hour increase this month.
“Instead of using an electric rice cooker, we will just use charcoal to cook and cut down on watching TV,” said Dario Beceril of barangay Tipolo, Mandaue City.
The Visayan Electric Company (Veco) said the increase to be reflected in June billings was due to a higher generation charge passed on by the National Power Corp. and other power suppliers.
Aron Rempohito of barangay Urgelio, Cebu City, said he plans to cut down on using the air conditioner at home and rely on an electric fan instead.
Businesswoman Natalie Lim Choi said her bakery and dormitory businesses in barangays Kalubihan, Colon and Carbon would surely be affected by the power hike.
“This only increase our expenses. I wonder why there is an increase when the prices of petroleum have gone down,” Choi said.
Article continues after this advertisementBagong Alyansang Makabayan chairman for Central Visayas Jaime Paglinawan questioned the Energy Regulatory Commission (ERC) for approving the increase.
Article continues after this advertisement“Why does the ERC always approve questionable increases of Veco?” he asked.
“They have not even explained yet how they spent proceeds of the increase under the Performance Based Regulations (PBR) and now they are levying another increase?”
don’t blame us
Ethel Natera, Veco communications manager, said the increase was not initiated by Veco but a pass on charge to consumers due to a increase in generation charge by Napocor and independent power producers (IPP) through the Wholesale Electricity Spot Market or WESM.
Under the Energy and Power Industry Reform Act or Epira, the power sector has been unbundled into three main sub-sectors.
Power generation is handled by Napocor and the IPPs.
All power generators in Luzon and the Visayas participate in the WESM, which competitively sets the generation price.
Transmission is privatized and handled by the National Grid Corporation of the Philippines (NGCP), which channels power through high voltage tranmission lines to distribution utility companies like Veco and electric cooperatives that service households, commercial establishments and industrial customers.
“This is a generation rate increase. It is not an increase in the distribution charge of Veco. There is no change in the distribution charge,” said Taneo.
“Veco does not generate power. We only distribute power to individual consumers,” Natera said. /Careen L. Malahay, Correspondent
