Gatchalian to ERC: Demand refund if Visayan Electric's charges are unjustifiable

Senator Win Gatchalian said a refund should be in order if it will be proven that a violation has been committed by the Visayan Electric Company (VECO) because of its high cost of electricity.

Gatchalian took note of the January 4, 2021 directive issued by the Energy Regulatory Commission (ERC) to VECO demanding an explanation on the high cost of electricity specifically citing that from January to October 2020, the power purchases made from Cebu Private Power Corp. (CPPC) averaged at Php35.3853 per kilowatt hour (kWh), with generation rate spiking significantly high at P1,470.90 per kWh for the month of September last year.

"Kung mapapatunayan na hindi makatwiran ang singil ng VECO, dapat ibalik nila ang binayad ng mga kunsyumer. Mandato ng ERC na protektahan ang interes ng publiko lalo na kung may pang-aabuso ngang nagawa," Gatchalian said.

The senator also took note of Section 23 of the Electric Power Industry Reform Act (EPIRA) specifying that distribution utilities (DUs), VECO included, have the obligation to supply electricity in the least cost manner to its captive market.

CPPC is just one of the four independent power producers (IPP) supplying the energy requirements to VECO. The other three are Green Core Geothermal Inc. (GCGI), Cebu Energy Development Corporation (CEDC) and Therma Visayas Inc. (TVI) whose power purchases averaged only at Php5.5584 per kWh, Php4.8922 per kWh and Php5.6821 per kWh respectively, from January to October 2020.

ERC Chairperson and Chief Executive Officer Agnes Devanadera directed VECO to explain its high electricity rates last year and its perceived violation of Section 45 (b) of the EPIRA, which provides that "no participant in the electricity industry or any other person may engage in any anti-competitive behavior including, but not limited to, cross-subsidization, price or market manipulation, or other unfair trade practices".

The ERC acted on the complaint made by the Cebu Chamber of Commerce Inc. (CCCI) last December, coursed through the Regional Development Council in Central Visayas (RDC-7), claiming that the high cost of electricity is proving to be a major stumbling block in boosting the business competitiveness of the region.

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Visayan Electric dapat magrefund kung napatunayang sobra ang singil — Gatchalian

Kung mapapatunayan na may mga paglabag na nagawa ang Visayan Electric Company (VECO) dahilan kaya mataas ang naging singil nila ng kuryente, iginiit ni Senador Win Gatchalian ang pag-uutos ng Energy Regulatory Commission (ERC) ng refund sa VECO sa mga nasasakupan nito.

Ginawa ni Gatchalian ang panawagan matapos maglabas ng kautusan noong ika-4 ng Enero 2021 ang Energy Regulatory Commission (ERC) sa VECO upang ipaliwanag ang mataas nitong singil ng kuryente mula Enero hanggang Oktubre ng nakaraang taon. Sa nasabing 10 buwan, bumili ng suplay ng kuryente ang VECO sa Cebu Private Power Corp. (CPPC) sa halagang Php35.3853 kada kilowatt hour (kWh) at pumalo ang generation rate ng hanggang Php1,470.90 kada kWh noong Setyembre 2020.

"Kung mapapatunayan na hindi makatwiran ang singil ng VECO, dapat ibalik nila ang binayad ng mga kunsyumer. Mandato ng ERC na protektahan ang interes ng publiko lalo na kung may pang-aabuso mang nagawa," sabi ni Gatchalian.

Batay sa Section 23 ng Electric Power Industry Reform Act (EPIRA), sinabi ni Gatchalian na inaatasan ang mga distribution utilities (DUs), katulad ng VECO, na mag suplay ng kuryente sa presyong abot-kaya ng merkado nito.

Ang CPPC ay isa lamang sa apat na independent power producers (IPP) na nagsu-suplay ng pangangailangang kuryente ng VECO. Ang tatlong iba pa ay ang Green Core Geothermal Inc. (GCGI), Cebu Energy Development Corporation (CEDC) at Therma Visayas Inc. (TVI). Mas mababa nang di hamak ang singil ng tatlo kung ikukumpara sa CPPC. Ang generation charge ng kuryenteng binili mula Enero hanggang Oktubre 2020 ng VECO sa GCGI ay nasa average na Php5.5584 kada kWh, samantalang nasa Php4.8922 kada kWh ang singil ng CEDC at Php5.6821 kada kWh naman ang singil ng TVI.

Sa kanyang direktiba, pinagpapaliwanag ni ERC Chairperson at Executive Officer Agnes Devanadera ang VECO dito sa usaping ito pati na ang posibleng paglabag ng naturang utility company sa Section 45 (b) ng EPIRA kung saan nakapaloob na walang kalahok sa industriya ang maaaring makisali sa anumang anti-competitive behavior tulad ng cross-subsidization, pagmamanipula ng presyo sa merkado, at iba pag unfair trade practices.

Ang kautusan ng ERC ay bunsod ng reklamong inihain ng Cebu Chamber of Commerce Inc. (CCCI) noong Disyembre sa Regional Development Council in Central Visayas (RDC-7) kasunod ng sobrang taas na singil ng kuryente na ayon sa kanila ay nagiging malaking balakid sa paglago ng negosyo sa kanilang rehiyon.