Group opposes House bill to expand franchise of electric distribution utility in Iloilo City
- Oct 14, 2021 3:34 pm GMT
The national association of rural electric cooperatives in the country is opposing a bill that would expand the coverage of Iloilo City's electric distributor owned by business tycoon
Rural electric cooperatives in Iloilo also warned that the passage of the bill would lead to the takeover by private corporations of electric cooperatives.
In a four-page position paper dated
The bill, sponsored by seven legislators, including Iloilo Representatives
These include the towns of Alimodian, Leganes, Leon, New Lucena,
In their explanatory note, Biron and Gorriceta cited reduced electricity rates and rehabilitation and improvement of the power distribution system in Iloilo City a year and a half after
'We feel that such service, marked by the highest standards, and which has been proven to be fast, reliable, responsive, modern, and forward-looking should be also made available to Ilonggos outside Iloilo City,' they said.
But Philreca pointed out that these areas are already covered by
It said granting
This also violates a provision of the National Electrification Administration Act that states '…no franchise for service shall be granted to any other person within any area or portion for which a cooperative holds a franchise..,' according to Philreca's position paper.
Allowing More Power to operate in areas where electric cooperatives already serve consumers would also be redundant and lead to additional costs, it said.
'More (Power), if allowed to expand its franchise as a distribution utility, will then construct a duplicate distribution system and redundant facilities to serve the same customers,' Philreca said.
'In the long run, More (Power) cannot offer cheaper and more affordable electricity and energy costs in the areas being added. Instead, it will only charge the consumers a higher rate,' according to the position paper.
Residential consumers in Iloilo City have been charged P6.4562 per kWh from P10.0149 in June or a drop of P3.55.
The rate for commercial consumers also dropped by P3.31 per kWh to P6.18 in July from P9.49 in June.
Republic Act No. 11212 signed by
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