PECO asks PCC to probe MORE Power

By Lenie Lectura – September 8, 2020
from Business Mirror

Panay Electric Co. (PECO) wants the Philippine Competition Commission (PCC) and the Energy Regulatory Commission (ERC) to probe More Electric and Power Corp. (MORE Power) for allegedly committing anti-competitive practices in light of overcharging system loss rate.

In a complaint filed before the PCC on Monday, PECO administrative manager and head of consumer engagement and government affairs Marcelo Cacho said MORE Power has been charging the Iloilo City consumers more than what is allowed under ERC (Energy Regulatory Commission) Resolution No. 20-17.

“MORE has abused its dominant position by imposing upon its customers unfair price for services rendered,” PECO said in its 39-page verified complaint.

“In view of the foregoing, (we) respectfully pray that MORE be investigated and, after appropriate proceedings, be adjudged guilty of ant-competitive conduct constituting violations of the 1987 Constitution, EPIRA (Electric Power Industry Reform Act) and the Philippine Competition Act.”

System losses refer to the cost of electricity that was either lost in transmission through power lines or pilfered. These losses are passed on to consumers up to a certain percentage or up to the so-called system loss cap, which refers to the limit beyond which a utility is no longer allowed to recover from its customers the cost of electricity.

MORE Power’s system loss charge in March stood at P0.4729 per kilowatt hour (kWh), P0.4719 per kWh in April, P0.7612 per kWh in May and P0.6617 per kWh in July.

PECO said that based on a reading of the electricity bills issued by MORE Power from March to July, there is a trend of system loss charge increase.

PECO said its computation showed that MORE Power’s system loss in those months reached P0.4718 per kWh, P0.4735 per kWh, P0.4810 per kWh and P0.4935 per kWh, respectively.

Based on those figures, PECO said MORE Power overcharged consumers P0.0011 per kWh in March, P0.2802 per kWh in May and P0.1682 per kWh in July.

“If we get the summation of the overcharges rates and multiply it to the average monthly consumption of 55,000 kWh, it appears that the consumers of Iloilo City were overcharged the amount of P24,725,500.00,” said PECO in its 22-pge manifestation filed before the ERC.

PECO said MORE Power violated Section 15(h) of the Philippine Competition Act when it implemented unfair pricing on customers.

“The system loss charge is a component of the total bill charged by MORE Power. In other words, the hapless consumers of Iloilo City are made to pay an unexplained and unaccounted for high rate system loss charge,” it said.

PECO said systems loss charge will only increase if there are problems in the capacity of the distribution facilities to deliver electricity and/or pilferage, meter reading errors, meter tampering and other reasons not related to physical characteristics of the electrical system.

“Thus, the question is, if MORE says it is improving its services in distributing electricity and that it is intensely targeting pilferers, why then did MORE increase its system loss charges in the months of May and July?

If MORE is truly transparent to its consumers, MORE should explain why these anomalous figures appear in the electricity bills of the consumers of Iloilo City?” PECO’s filing with the ERC stated.

MORE Power said it has yet to receive a copy of the complaint and manifestation.