Chamber Beat: CCCI call for lower power cost reaches ERC, probes VECO

CEBU, Philippines —  Last year, the Cebu Chamber of Commerce and Industry (CCCI) strongly raised its concerns involving the high cost of electricity in Cebu alleging it to be one of the top three obstacles for business competitiveness in Cebu.

CCCI has since then called for interventions from the Regional Development Council (RDC-7) and the Presidential Assistant for the Visayas (OPAV).

In a letter dated January 4, 2021, Energy Regulatory Commission (ERC) chairperson and chief executive officer Agnes Devanaderahas directed the Visayan Electric Company to submit an explanation over its alleged high power rates and violation of Section 45 (b) of Republic Act 9136 of the Electric Power Industry Reform Act (EPIRA).

Section 45 prohibits cross ownership, market power abuse and anti-competitive behavior further stating that no distribution utility shall be allowed to source from bilateral power supply contracts more than fifty percent (50%) of its total demand from an associated firm engaged in generation.

“For the longest time, we have been complaining about Cebu’s high electricity rates. We hope that ERC’s probe on Visayan Electric’s rates will eventually result in cheap power that will propel Cebu to be more competitive, especially in this time of pandemic where many are suffering. Visayan Electric’s decision to lower the cost will be its greatest legacy to Cebu, the very place where it came from,” CCCI President Felix Taguam said in a statement.

Taguiam sees the probe on Visayan Electric by ERC as a welcoming development following its appeal on December of last yearfor the Energy Regulatory Commission (ERC) to shed light on the issues raised by the business community.

“At the end of the day, the CCCI is only faithful to its role as the engine of Cebu’s business growth towards global competitiveness and the voice of the business community. We will continue to seek ways to be more relevant to our members and be the catalyst of growth for Cebu’s business community,” he added.

For more information, visit the CCCI Facebook page or email at [email protected].