ERC's approval of VECO's rate hike brought to court

The Freedom from Debt Coalition group yesterday said it would file at the Court of Appeals a motion for reconsideration questioning the Energy Regulatory Commission's recent decision that allowed the Visayan Electric Company to increase power rates.

VECO got the go-signal from the ERC last August 8 to hike its power rates to recover the P15 million additional cost it spent for emergency measures to avert a shutdown of operations of the Cebu Private Power Corporation.

The FDC immediately reacted saying it would raise the matter to the appellate court hoping to stop VECO from increasing its rates.

"Filing a motion for reconsideration is our immediate recourse...for a certiorari," said FDC president Michael Enriquez, adding that his group would do so within 10 to 15 days after receiving the ERC's decision.

Enriquez said the commission's decision would lead to more problems in the future because of a pending civil suit that VECO filed against CPPC at the Regional Trial Court.

Enriquez explained that, with the ERC decision, a double recovery might arise in case VECO later win its case in court because CPPC would then be made to pay back what VECO had paid before, based on the agreement the two firms forged in November.

The outcome would be disadvantageous to the consumers, said Enriquez as he also contended that the VECO-ERC matter is like forum shopping.

ERC countered however that its decision favoring VECO would not result in a situation of forum shopping because VECO's case in court only involved damages.

"The award for damages is not within the express authority of the commission to rule upon," ERC explained.

ERC said the court, on the other hand, could not rule on the request of VECO for recovery of cash costs it advanced to CPPC because the matter is not within the jurisdiction of the commission.

ERC further noted that, last August 7, VECO filed in court a notice of dismissal of the civil case against CPPC. -Wenna A. Berondo/RAE