Veco: Red bill to serve as final notice

CEBU, Philippines - The Visayan Electric Company (VECO) announced yesterday the elimination of the "white paper notification slip" for disconnection, to promote efficiency and to change the customers' payment mindset.

Effective July 1, 2016, VECO will no longer distribute the ultimate disconnection reminder which comes in a small white paper, which normally follows 48 hours after the "red bill" is sent to the customer, said Bienvinedo Saniel, VECO head for revenue management.

VECO had been doing this practice long before the Aboitiz Group overtook the majority share of the electric distribution utility in 2012.

A two months unpaid electric bill, which comes in a "red" shaded bill, will now serve as the ultimate disconnection notice, which gives the customer a leeway of 48 hours upon receipt.

 Based on the Electric Regulatory Commission (ERC) rule, the "red bill" is considered as the final and ultimate reminder for disconnection.

“Distribution of the white paper notice is beyond what the law required,” Saniel said.

  Of the over 400 thousand VECO customers within its franchise area, covering from San Fernando in the Southern part of Cebu, and up to Lilo-an in the northern part of the Metro, an average of 160 thousand customers are regularly receiving the red bill, of which 40 thousand are served the "white slip."

  "We are trying to change the mindset of our customers," said Saniel explaining that receiving the two months unpaid bill or red bill is already the "final" disconnection notice.

While the disconnection leeway is shortened, service and cost efficiency is seen to strengthen.

  ERC only requires electric distribution utility to provide a credit allowance of one month. However, VECO had been implementing a two-month credit allowance to every customer. Elimination of the "white slip" disconnection reminder will only shorten the grace period from serving the disconnection notice to actual cut-off of electric connection.

VECO inherited this practice from the previous management, which had been carried out by the Aboitiz-led and managed company up until now.— (FREEMAN)