As MECO deal expires, Del Mar: Renew franchise; Paz: He did not consult us

CEBU, Philippines - Mayor Paz Radaza has questioned a bill filed by Cebu City North District Rep. Raul del Mar in Congress that seeks to renew the franchise of a power supply firm in Lapu-Lapu City.

Del Mar had filed a bill in the House of the Representatives under the Committee on Legislative Franchises on January 20 for the renewal of the 25-year franchise between Mactan Electric Company and Lapu-Lapu City government, according to Radaza.

But Radaza objected on the bill because del Mar did not reportedly consult the city concerned.

“We are the major consumers of MECO,” Radaza said yesterday.

Radaza, along with city councilors and barangay captains, went to the House of the Representatives to lobby for their cause, but it turned futile as the CLF already approved it.

Last February 11, the Lapu-Lapu City Council penned a resolution opposing the grant of another 25-year MECO franchise in the city. The current agreement is set to expire in 2016.

The resolution said the barangays made a dialog with their constituents in order to find out whether the city should continue its franchise renewal with MECO.

“The results of the dialogs and discussion with their respective constituents revealed that most expressed disappointment, frustration and opposition to the renewal of MECO services,” the resolution read.

The measure further said the filing of the bill did not carry the signature or endorsement of Lapu-Lapu City Rep. Aileen Radaza, when in fact the latter is “more knowledgeable about the many complaints against MECO” that have “not been addressed.”

Around 85 percent of MECO’s customers are found in Lapu-Lapu City. It serves about 85,000 establishments in the city and its adjacent town, Cordova.

MECO vice president and general manager Gilber Pagobo denied the allegations of “poor services” against their firm.

Pagobo cited the favorable results of a recent technical and non-technical evaluation made by an international consulting firm that reportedly ruled out “MECO is performing so exceptionally well.”

“Power outages in Olango Island and mainland happen when power supply is low, a problem that is beyond our control,” Pagobo said.

He said MECO has a plan to provide power supply to the islet nearest to Olango Island but the Department of Environment and Natural Resources disagreed with their plan.

“Our services are delivered correctly and according to the rules prescribed by the Energy Regulatory Commission. MECO is highly regulated entity. We are regulated by the ERC and monitored by the Department of Energy. We are in compliance with all the regulations,” Pagobo said.

For his part, del Mar contended that any member of the House of the Representatives can file a bill renewing the franchise of electrical firms.

He said he supported the bill because he believes MECO delivers good services and charges the lowest rate in the region.

“Dili man ni solo nako (I’m not doing this alone). My interest is shared by the constituents of Lapu-Lapu City. What is good for Lapu-Lapu City is also good for other districts and Cebu Province,” he said.

Del Mar told The FREEMAN it was MECO owner Douglas Luym who encouraged him to lobby for the bill. Luym is said to be del Mar’s friend.

“The ultimate decision is not mine. I can only propose,” the congressman said. (FREEMAN)