VECO to charge customers for underground project

CEBU, Philippines - The Visayan Electric Company would like to pass on to consumers the cost of implementing the underground distribution system (Phase 1) amounting to P78 million.

“This is applied to all franchise area of VECO in Cebu,” said Maria Theresa Sederiosa, Reputation Management Department Head.

She added, “the cost of any capital expenditure, because it is improvement to the service of the customers. Business as they are, because they are allowed a profit. These things are imputed in the cost of the service.”

The Phase 1 of the project transferred beneath the ground the overhead power lines from the stretch from the provincial Capitol to the Fuente Osmeña Circle in Cebu City.

Sederiosa clarified, however, that the charges won’t take effect until after approval of the Energy Regulatory Commission.

The ERC is the regulating body that determines when charges are imposed and how much they would cost, Sederiosa said.

She assured that a possible increase in the electricity bill will be minimal because ERC will also consider the welfare of customers.

At the Cebu City Hall, however, Mayor Michael Rama expressed disagreement to the move.

“They should not do that. They have a lot of profit already,” Rama said.

Councilor Sisinio Andales also noted that VECO has all gains and no losses because they recover it by charging consumers.

Sederiosa explained the possible charge will not be a “loss” on the part of consumers since it is considered a capital expenditure for VECO to be able to give better service.

VECO will file its application for the charge with the ERC early next year but Sederiosa said the process will take long, as the hearing on the application will take almost a year.

Meanwhile, Elmer Lintag of PLDT said the company has complied with Phase 1 of the underground distribution system project last October 18.

Lintag is PLDT’s operations head in Cebu, Bohol, Samar and Leyte.

“We have able to meet our deadlines at pinag-uusapan na namin ang phase 2, which is longer and more costly,” he said.

He said the cost of the project will not be charged to consumers.

PLDT is planning to start implementing phase 2 – from Fuente Osmeña to P. del Rosario Street – by middle of next year.

The underground system is mandated by City ordinance 2315, which regulates street diggings, excavation, restorations, and installations of overhead and underground main and secondary utility/service lines and other related infrastructure activities within Cebu City.

VECO has inaugurated the first phase of its project last October 28.  (FREEMAN)