By Jean Mayingque
ORMOC CITY Do they need an increase or not?, this seems to be the question in everyone’s minds when officials of the Leyte Electric Cooperative Inc. V (LEYECO) presented to members of the Sangguniang Panlungsod here the rationale behind a 37-centavo hike they are asking, but admitted at the end that they were asking for it because they were instructed to by the Energy Regulatory Commission.
Vice-mayor Nepomuceno P. Aparis I, on the other hand, said he will be questioning the petition of “setting of wheeling rates”, taking note that Leyeco V claims to have conducted public consultations but did not.
Even as the Leyeco V representatives said they had informed the SP about a past consultation on the matter, the vice-mayor said he could not recall an invitation.
Aparis emphasized that the matter should undergo a real public hearing represented by coop members and not just the ERC and LEYECO board of directors and a handful of members.
EV Mail publisher Lalaine M. Jimenea, on the other hand, said that she was able to attend the so-called public hearing, but added she was among the few that vote “no” to the increase being proposed then.
She also noted that two other prominent members of the business community also walked out, Atty. Roy Bernard Fiel and Ernesto B. Rizarri. Fiel reportedly later said he did not want to be part of the proceedings, feeling like it was being railroaded.
Leyeco V managers led by Engr. Juanito Jorda faced the SP members and the press Friday afternoon (November 6) at the SP session hall, and explained why they were asking for the increase.
The 37-centavo hike, or P 0.3698 to be exact, they said, would be used to improve their services and for maintenance and operating expenses.
Jannie Ann Dayandayan, finance manager, said that LEYECO V now belongs to group “E” with 1-2 MW sales every year and with 50,000 to 100,000 consumers a month.
She further explained that cooperatives belonging to the same classification have been asked by the ERC to file similar petitions, for a uniform increase and standardize their rates. As such, the ERC formula entails a 37-centavo increase which she added, will generate P 61-million for the cooperative annually.
So, on May 9, 2009, LEYECO V Board of Directors passed board resolution No.54, series of 2009 imploring the ERC to implement the new rate setting methodology embodied in the Rules for Setting the Electric Cooperative Wheeling Rates (RSEC-WR).
Included in the RSEC-WR is the implementation of a new customer class categorized as residential customers; low voltage customers (include commercial, industrial, public buildings and street lights) and; high voltage customers. The application for rate increase is the off-set of the new customer classification.
More than half (Php 35M) of the expected increase in revenues will be allotted for reinvestment or members’ contribution for capital expenditures (CAPEX) and Php 25-million will go to operation and maintenance expenses.
The reinvestment fund will be used for rehabilitating and upgrading of power lines.
Dayandayan also noted that the last time Leyeco V had a rate increase was in 2004, which ERC based on the 2000 wage price index. ERC used the same wage price index to simulate the price for 2006, 2007, and 2008.
Later in the discussion, Engr. Juanito Jorda, OIC General Manager of LEYECO V disclosed that the cooperative asked for an increase only because ERC has commanded them to.
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I SAY NO!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
mura man ug way klaro ni nga balita.
Ingon ang coop nag implore sa ERC para sa pag implement sa increase nya later sa balita ingon ang OIC nga ang ERC ang nag mando nga mag increase sila?!? WAY KLARO!!!
sige lang mo pa increase pero ang inyo serbisyo sa katawhan way ayo. Kanang inyo mga transformer nga sige lang ug boto (kay ang mga sud gipang ilisan ug daan nya ang mga bag-o ibaligya ug utro sa leyeco). di ba mao man na ang gibuhat sa usa sa inyo mga tawo di ba gali na dakpan man to pero inyo lang gihilom sa mga tawo? Naa pa nang mga poste nga pwerte nang karaana maghuwat pa nga matumba una ilisan. Wa gyud na ninyo maatiman sige lang mo padako sa inyo mga tiyan. Nya karon inyo ipasa sa mga consumers ang pagpa anindot kunuhay o pag improve sa inyo serbsiyo. Kadugay na sa serbisyo sa leyeco syaro wa mo kapundo ug dako para sa rehab anang mga nagkakaraan na nga mga poste, wiring, transformer ug uban pa. Basin inyo ra mga bulsa ang inyo gisige ug pundo.