VECO bucks taxes for posts, circuit boxes

CEBU - The Visayan Electric Company strongly opposed a proposed Cebu City Council ordinance to tax the electric posts and circuit boxes installed in public places within the city.

VECO Vice President Ma. Chona Y. Tiu said this plan reportedly unlawful.

Tiu said VECO is allowed by law to install its electric posts and other gadgets even in public places without paying additional taxes and other charges to the government.

She also said the proposed ordinance may even cut into the rights of liberty and property.

“If approved, such ordinance not only results in an unequal protection of laws by Cebu City, but the city will violate the non-impairment of obligation clause under the Constitution,” Tiu said.

Tiu said the imposition of annual fees on every utility post that are situated in public roads is abhorrent to the rules laid down by the Energy Regulatory Commission pursuant to the national policy embodied in the Electric Power Industry Reform Act.

Citing Article 28 of the Magna Carta for Electricity Consumers, Tiu said the law clearly states that the consumers shall allow the distribution utility, like VECO, if necessary, to construct its poles, lines and circuits and to place its transformers, apparatus on their property or within their buildings.

The proposed ordinance was submitted by Councilor Augustus Pe Jr. who said the city should also charge VECO for its utility posts constructed in public places considering that VECO is quick to pass on to its consumers whatever expenses it incurs. — Rene U. Borromeo/JMO (THE FREEMAN)