Pre-paid electricity scheme hits snag

The Visayan Electric Company (VECO) has put on hold its pre-paid electricity scheme due to the expensive pre-paid meter units as well as due to the vague government regulations on pre-paid electricity metering system.

"As of this time, it is still not good to implement pre-paid electricity system. We are still talking with the Energy Regulatory Commission," said Veco chief operating officer (COO) Jaime Jose Aboitiz.

According to Aboitiz, the company still has to look for more suppliers of prepaid meter units as the current supplier offers very costly meters pegged at P5,000 each.

"We haven't found a prepaid metering solution that is cost effective. We are looking for the 'magic number'," Aboitiz said clarifying that a P2,000 per unit could be an ideal cost.

He said if VECO will offer expensive prepaid metering unit, customers are not expected to pay as expensive as P5,000 each.

Also, he said ERC still has to formulate its own Implementing Rules and Regulations (IRR) on prepaid electricity system, as this is something new in the Philippines.

In the United States, and some countries like Africa, prepaid electricity metering system has been practiced. Whereas here in the Philippines, the system has yet to be familiarized, although Filipino consumers are well oriented already of the pre-paid revolution.

Implementing the pre-paid electricity billing, was brought up late last year, as part of the company’s cost cutting measures.

Aboitiz emphasized that disconnection and reconnection processes involves added cost to the company, and that prepaid concept is a better strategy to avoid these problems.

Aside from cutting cost on disconnection and re-connection works, Aboitiz said some customers may also benefit from the pre-paid system, especially those who own apartments, boarding houses, vacation homes, condominiums, among others.

Because of these problems, Aboitiz said VECO still has no definite timetable as to the target date of the full implementation of the pre-paid billing system.

Aside from the United States, the company is also eyeing manufacturers of prepaid electricity units in Germany, China, and Singapore.