Power to the Consumers

“Make a move, before they make a move and you…
Move around and get from one to two…”
- from “Move!” by Damian Marley

Now that the election is over may we request our “beloved” politicos to immediately start working for the taxpayers and consumers.

First order of business, here in Iloilo City, should be to alleviate the burden of the power consumers who for years have been slapped with exorbitant electric bills. PECO (read: Patay Electric Consumers) has for decades manipulated the rate setting mechanism to pad its electric rates. And up to now, it seems there is no respite to the suffering of the Ilonggo consumers.

To compare, look at the amount of taxpayers’ money that the Province was able to save recently when they shifted their power source from PECO to Napocor. Now, the Iloilo Provincial Capitol only spends about half of what it pays PECO before.

Let us remember that the Iloilo City Government is also the biggest power consumer and it will be the first one to profit from any decrease in power rates. So the people of Iloilo will benefit both as consumers and taxpayers.

The questions now are: Is there a way to end this abuse and malpractices of PECO? Is there a feasible solution in sight? Or do we simply remain at the mercy of PECO?

The answer is: Yes, there is a way! In fact we now have a golden opportunity to have a say in PECO and in fact take over its management as a consumer cooperative. To recall, the Energy Regulatory Commission (ERC) ordered PECO last year to refund P2.89 Billion of overcharges to its consumers covering the period of February 1996 to December 2005. This amount, instead of the tedious process of distributing it back to thousands of consumers, should be converted to shares to take-over the management of PECO.

This take-over proposal is actually upon the initiative of the Freedom from Debt Coalition – Iloilo Chapter (FDC-Iloilo), which is currently chaired by consumer advocate Atty Roming Gerochi. Many groups and consumers are already supporting and endorsing this proposal.

The only missing ingredient now is the City Government’s action on the matter. If there is political will on both the executive and legislative branches of the city government this surely can be done. A resolution should be passed by the Iloilo City Council to support this move to take-over PECO and create a committee to pursue this objective. The City Mayor should support this effort and may start studying this feasible proposal by the consumers.

To all Ilonggo consumers, let us join our voices to pressure our politicians to act on this fast.

* * * * *

This column also join all consumers and groups in condemning the serious attempt on the life of Atty. Roming Gerochi and his family. In the strongest terms, we denounce that cowardly act and call on concerned government agencies to act swiftly and prosecute those responsible.

Below are excerpts from the Press Statement released by FDC-Iloilo, which was jointly signed by several other organizations.

“We, the members of Freedom from Debt Coalition, Sanlakas, Bukluran ng Manggagawang Pilipino (BMP), Partido ng Manggagawa (PM), and Kongreso ng Pagkakaisa ng Maralitang Lungsod (KPML) condemns in the highest possible terms the attempt on the life of our leader Atty. Romeo Gerochi and his family, by still unidentified men or group who launched an M-203 grenade launcher on his residence at dawn of July 6, 2007.”

“Though the grenade failed to detonate, we view this incident as an attempt to harass and intimidate, and most of all, to silence the chairperson of the Freedom from Debt Coalition-Iloilo Chapter.”

“We do not discount the fact that as a pro-poor and pro-people, Atty. Gerochi could earn the ire of the elite in Iloilo especially that he leads controversial advocacies against the abuses of public utilities like Panay Electric Company, and much recently, the Metro Iloilo Water District.”

“Likewise, we do not deny the fact that Atty. Gerochi might have disappointed the elite politicians with his progressive perspectives in politics and governance and of his strong anti-privatization stand regarding the issues involving public utilities and of issues marred by corruption like the Pavia Housing Scam.“

PECO’s overcharges

”Watch how the ice melts away
Crystals of fire and heat
Drip drop by drop, now a stream…”
- Sara Mathai Stinus

Cheers to another victory to the cause of the consumers! In a recent decision dated June 9 2009, the Energy Regulatory Commission (ERC) ordered PECO to refund power consumers P2.89 billion pesos worth of overcharges. We have been abused and plundered by PECO for a long time and this is payback time.

An excerpt of the decision reads: “Upon thorough review of the documents submitted by PECO, the Commission found that PECO’s implementation of its PCC (Power Cost Charge) resulted to over-recoveries amounting to PhP2,888,220,748.00 for the period February 1996 to July 2005.”

The then Energy Regulatory Board (ERB) has set a formula for the computation of rates. But PECO with its talent and creativity has managed to go around the formula to squeeze the consumers even drier.

After years of battle, the ERC at last saw the light. It’s a long overdue decision but definitely this is a big blow to PECO. We have to especially thank consumer advocate Atty. Romeo Gerochi who now chairs FDC-Iloilo for the continuous and consistent advocacy against the power giants.

Just imagine the scale by which this power distribution utility exploits rate-making schemes to milk the most from its consumers. That is almost P3 billion in overcharges! And that does not even include interests. Since that amount belongs to the consumers, it is the same situation as if PECO borrowed money from us. The consumers are the creditor and PECO is the debtor. Thus we could even demand from ERC that interests from such amount loaned should be added to the P2.89 billion.

Or we can even see it as the consumers investing billions of pesos to PECO. A return on investment is absolutely right and proper.

While we expect PECO to utilize all its resources to block the implementation of this order, this is nevertheless a reason to celebrate. This decision unmasked once again PECO’s malpractices as this column has since been exposing.

Now, who said that only government-ran agencies are inefficient and corrupt? PECO is a classic example of a private run entity that reeks in inefficiency and corruption. Contrary to the supporters and sponsors of the privatization policy (institutions like the IMF, the World Bank and other international banks), private-ran doesn’t necessarily mean efficiency, competition and lower rates.

The government’s privatization policy is flawed. Public utilities are imbued with public interest and it is the government’s responsibility to promote such interest and should not be delegated to profit-motivated entities.

So, what is the best argument against the privatization of public utilities like power and water services? The clear answer is right before our very eyes – Panay Electric Company.

(Send your comments and reactions to: for text messages to 0919-348-6337; for e-mails to ianseruelo@yahoo.com)