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Friday, March 29, 2024

ERC asks PECO to explain alleged lapses in Iloilo power distribution

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The Energy Regulatory Commission asked Panay Electric Company Inc. to explain the alleged operational lapses in Iloilo City power distribution as found by the agency’s inspection team.

PECO operates the distribution network of Iloilo City by virtue of an ERC-issued certificate of public convenience and necessity until the new franchise holder, More Electric and Power Corp. completes the takeover of the city’s distribution system.

“Based on the findings of the ERC technical team that conducted the ocular inspection on the electric distribution system of PECO, the latter committed lapses in the operations and maintenance of its distribution system, thereby posing danger and risks to the lives and properties of its consumers,” ERC chairperson Agnes Devanadera said in a statement.

ERC issued an order dated Nov. 26 directing PECO directors and officers to explain why no administrative penalty should be imposed and/or criminal action instituted against them for allegedly violating the pertinent provisions of the Philippine Distribution Code 2017 Edition; amended Distribution Services and Open Access Rules; amended Elevated Metering Center rules; and ERC Resolution No. 12, Series of 2009  regarding the guidelines for the accreditation of satellite laboratories of meter shops.

“PECO must submit its explanation within 15 days from receipt of the commission’s order pursuant to the relevant provisions of the Electric Power Industry Reform Act. We need to accord PECO the opportunity to explain its side before we evaluate the extent of their liability for the operational lapses that were discovered,” Devanadera said.

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The ERC inspection team found that PECO’s protective devises were not properly rated and designed, some poles were found leaning and in unsafe positions and some meters were clustered and installed in an elevated metering center without securing prior ERC approval.

The team also uncovered that the certificate of authority for PECO’s meter shop expired on Nov. 18 and PECO had not filed an application for the renewal of the same.

ERC responded to an appeal from Iloilo City Rep. Julienne Baronda and PBA Partylist Rep. Jericho Jonas Nograles, vice-chairperson of the House committee on energy, to fast-track its investigation into the pole fires that plagued Iloilo City.

Iloilo City Mayor Jerry Treñas earlier filed the complaint to address PECO’s failure to prevent the continuing threat to public safety by PECO’s “inadequately-maintained lines, power outages and hazardous electric posts” because of the alleged numerous and continuing cases of electricity pole fires in the city.

Treñas said PECO studiously ignored informal and formal appeals from his office to address the problem by fixing or replacing its old distribution wires and electricity poles.

PECO lost its congressional franchise on Jan. 18 this year over mounting consumer complaints against the poor quality of its service and the safety issues against its distribution assets. 

PECO is also said to be operating with no business license because it had allegedly failed to settle a P97 million in real estate tax arrears with the Iloilo City government since 2006.

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