OPAV initiates dialogue to solve high power cost

CEBU, Philippines —  The Office of the Presidential Assistant for the Visayas (OPAV) is calling a dialogue, between the business sector in Cebu and the officials of Visayan Electric, to resolve the alleged high cost of electricity in Metro Cebu.

This was announced by Regional Development Council (RDC-7) chairman Kenneth Cobonpue yesterday during the fourth quarter full RDC Meeting.

Cobonpue responded to the presentation made by RDC-Economic Development Council chairperson Virgilio Brigido Espeleta claiming the nonchalance of both Visayan Electric and Electric Regulatory Board (ERB) on the business sector’s plea for transparency of power rates in Cebu.

OPAV Michael Dino has called on both parties for the scheduled dialogue.

According to Espeleta, the high cost of utilities/power is among the top 3 overall obstacles for business community in particular and Cebu as a whole.

“If lowered, utilities/power can be a top enabler and boost Cebu’s overall competitiveness,” Espeleta added.

 While Cobonpue agreed that the resolution of this particular issue has been delayed, he said further actions and RDC endorsement to bring this issue to national level will depend on the outcome of the dialogue between Visayan Electric and Cebu Chamber of Commerce and Industry (CCCI) officials tomorrow, December 9, 2020.

On the other hand, Visayan Electric expressed willingness to further discuss things with the business sector.

“Visayan Electric will continue to answer the queries of the business sector as we have done in the past. We are committed to make all sectors understand how the electric distribution industry works,” said Engr. Raul C. Lucero, President and COO in a statement.

Espeleta, speaking in behalf of the business sector alleged that Visayan Electric has violated the RA 9136 or Electric Power Industry Reform Act (EPIRA), saying it breached the cross-ownership rule where power sourced by Visayan Electric from its associated firms figuratively exceeds 50 percent of its total power demand contrary to the provision in the law.

Espeleta further reasoned that Visayan Electric purchased more of its supply requirement from its affiliated companies at higher prices even if other non-affiliated independent power producers and Wholesale Electricity Spot Market (WESM) were significantly cheaper sources at those points in time.

 Espeleta also asked for RDC endorsement asking the Anti-Red Tape Authority (ARTA) to compel ERC to answer letters of the Cebu business community and shed light on the issues raised.

“CCCI has been diplomatically appealing to both Visayan Electric and ERC since November 2019 to date, to lower the cost of electricity and provid clear answers to the issue. The rest of business community has joined while even a Manila-based consumer watchdog ‘Matuwid sa Singil sa Kuryente’ has gone public on these issues,” noted Espeleta.