“Radiating positivity, creating connectivity” CEBU BUSINESS Room 310-A, 3rd floor WDC Bldg. Osmeña Blvd., Cebu City You may visit Cebu Business Week WEEK Facebook page. April 26 - May 2, 2021 Volume 3, Series 84 www.cebubusinessweek.com 12 PAGES P15.00 RAMA WANTS LGU TO DISTRIBUTE POWER Vice Mayor says this can dismantle monopoly ELECTRICITY and wa- that during the Covid-19 pan- By: ELIAS O. BAQUERO He said that what hap- Raymond Calderon (Cebu, ter must be operated by the demic lockdowns. pens now is a monopoly in 7th District); Rep. Raymond city or municipality within Aside from power con- munication, and cooperatives, Metro Cebu and Province, and Democrito Mendoza (TUCP the jurisdiction of respec- sumption, power and water among others. is not appropriate considering Party-List); and Rep. Sonny tive Local Government Units utilities also collect from their “At that time, we always that power and water are the Lagon (Ako Bisaya Party-List). (LGUs) to reduce rates and respective consumers the re- talked about the concerns of rights of the people. He said we should adopt stop monopoly. fund of payments of DUs of several utilities. We conclud- He said a driver’s license the style of governance in Is- Cebu City Vice Mayor Mi- their franchise tax, local tax, ed at that time that power and is a privilege which can be rael where power and water chael “Mike” Rama suggest- national tax, systems loss, water must be centralized by revoked by the government distribution are owned by ed that Congress (House of among others. Congress to promote local au- anytime if there are violations. LGUs. Representatives and the Sen- Rama remembered that tonomy by allowing City Gov- But power and water are the The bulk of the VECO ate) must decentralize pow- Councilor Nestor Archival ernment or Municipal Gov- people’s right. franchise is in Metro Cebu er and water so every city or once filed a resolution in the ernment to operate power or “Let us amend the law. cities of Talisay, Cebu and municipality will be allowed Cebu City Council to investi- distribution utilities in their Congressmen and senators Mandaue. The Cebu Electric to operate it particularly that gate VECO. There was some respective areas of jurisdic- must do it now while election Cooperative (CEBECO) 1,2 power and water are the peo- explanation being done and it tion,” Rama said. is still too far away. Let us de- &3 cover most of Cebu Prov- ple’s right and should not be was brought in public. He said every city or mu- centralize power and water. I ince. subject to skyrocketing profit Some councilors consid- nicipality can get a business hope Congress will give fran- He said the real power is by the private sector. ered VECO service to bring partner from the private sec- chise to every city and munici- a maxim: “Vox Populi, Vox Rama echoed the let- electricity to every home as tor with a 60-40 percent own- pal governments,” Rama said. Dei.” (The voice of the peo- ter-complaints filed by the more important than alleged ership in favor of the LGU The Cebuanos, who are in- ple is the voice of God). Or Cebu Chamber of Commerce overpricing. Secondly, the concern. cumbent congressmen (2019- “Salus Populi Suprema Lex.” and Industry (CCCI) against ERC Visayas seemed to be ig- In Metro Cebu, Rama said 2022) are: Rep. Rodrigo Abel- (The general welfare of the Visayan Electric Company noring the public complaints there can be Cebu City Power, lanosa (Cebu City South); Rep. people is the supreme law). (VECO), a power distribu- against VECO. Mandaue City Power, Lapu- Eduardo R. Gullas (Cebu, So, you must listen to the tion company owned by the Rama said he has been Lapu City Power, Talisay City 1st District); Rep. Wilfredo people’s grievances. Greater Aboitiz family. the head of Regional Utilities Power, or Naga City Power. Caminero (Cebu, 2nd Dis- good for the greater number CCCI complained that Industry Board trict); Rep. Pab- of people must prevail. VECO power bill is exorbitant (RUIB) way lo John Garcia “I’ve seen and talked with and is subject to review and back late 80s (Cebu, 3rd Dis- ERC officials when they’ve imposition of penalty by the and late 90s, trict); Rep. Jan- appeared before the Cebu Energy Regulatory Commis- and he was the ice Z. Salimban- City Council when I was a sion (ERC) and the Depart- vice president gon (Cebu, 4th councilor, and when they’ve ment of Energy (DOE). of the board District); Rep. appeared at the same coun- Rama recalled that the for the entire Duke Frasco cil when I was a vice mayor. people in areas under the fran- country. He (Cebu, 5th Dis- I keep on telling them: “ERC, chise of VECO in Metro Cebu knew about the trict); Rep. Loli- do your job because if ERC is complained that their elec- respective con- pop Ouano-Di- not doing its job, it would be tricity bills increased twice, cerns of power, zon (Cebu, 6th a disservice to the people,” thrice, or even higher than water, telecom- District); Rep. Rama said. 2 April 26 - May 2, 2021 Cebu Business Week NEWS CCCI, PCCI discuss power issues in the Visayas THE Cebu Chamber of 1,000 member-companies Commerce and Industry and sectors but also the gener- (CCCI) brought to the Phil- al consumers, most particular- ippine Chamber of Com- ly during this unprecedented merce and Industry (PCCI) time of COVID-19 pandemic. its power advocacy in a Zoom The Cebu Chamber’s ad- meeting on April 13. The CC- vocacy on power gained trac- CI’s advocacy appeals for a tion in December 2019 with reasonable electricity cost a committee study on the in Cebu, transparency in the power rates of Cebu’s biggest power industry, and a regu- electric distribution utility latory agency that would best (DU) Visayan Electric Com- serve the interest of all the pany (VECO) which revealed consumers. several gray areas that could Aside from PCCI Pres- be major factors to the high ident Benedicto Yujuico cost of electricity in Cebu. and other PCCI officers, the CCCI had raised these issues meeting was joined by Ener- to VECO and ERC soon after gy Regulatory Commission study was done. (ERC)Legal Service Director Since then, the CCCI has Atty. Maria Gines, and Elec- strongly raised its concerns tric Power Industry Manage- Serving as another wel- in the waiting and we hope The CCCI Advocacy involving the high cost of elec- ment Bureau Director Mario coming development to the that through this afternoon’s to Lower Cost of Doing tricity in Cebu through vari- Marasigan, among others. Chamber’s advocacy on ease meeting ideas can be shared Business: Power ous communication channels “I want to acknowledge and low cost of doing busi- and you can have our Presi- The mandate of Cebu which has already reached the Visayas Chamber for rais- ness, the CCCI hopes that dent elevate this to the high- Chamber of Commerce and and caught the attention of ing attention to this import- through this meeting certain est level,” added PCCI Chair- Industry (CCCI) has always various offices such as the ant competitiveness issue. action steps will be taken in man for Utilities and Legisla- been to advocate and promote Regional Development Coun- The PCCI has been at the fore- ensuring that all issues raised tive George Barcelon. business competitiveness cil (RDC-7), the Presiden- front on advocacies to bring will be addressed by the prop- The meeting was mod- especially amidst a globally tial Assistant for the Visayas power rates to a competitive er authorities. erated by PCCI Energy Com- challenging and disruptive (OPAV), the ERC, and with level,” said PCCI during the “The issue regarding mittee Adviser Jose Alejan- economic environment, rep- the Office of Senator Sherwin meeting. the Visayas has been long dro. resenting not only more than Gatchalian. PR Complaints of CCCI vs. expensive electricity in Cebu reach ERC Manila DIRECTOR Joel Bon- Bontuyan said that since and by its nature, like a decision rendered by ERC, Manila Electric Company tuyan of the Energy Regula- these are letters-complaint, court. It has proper legal it has to be filed before the (MERALCO) to refund the tory Commission (ERC) Vi- they consider it as consumer procedure to follow,” Bon- Court of Appeals. Or before excess payments of Metro sayas said their main office complaint; hence, they are tuyan said. the decision takes effect, file Manila power consumers in Manila has received let- putting it on the usual pro- So, any letter-complaint a motion for consideration. will not automatically reflect ters of complaint from Cebu cedure on how to treat it. that ERC receives cannot be “That ERC decision on on VECO. Chamber of Commerce and Bontuyan added that treated as a formal petition power rates cannot be ques- The Senate and the ERC Industry (CCCI) against the CCCI raised several compli- for decision by the Commis- tioned through a letter-com- conducted a hearing on the skyrocketing prices of elec- cated issues including the sion. plaint,” Bontuyan said. MERALCO) case after thou- tricity in Cebu. alleged high electricity rate “We will treat the CCCI Another issue raised sands of power consumers Bontuyan, a lawyer, said of VECO. It has highly added letter-complaint as a con- by CCCI is the contract be- filed complaints against its that at least two CCCI let- to the high cost of operation sumer complaint. The initial tween VECO and Cebu City exorbitant and unreason- ters were addressed to ERC amid Covid-19 pandemic.