Veco won’t scrap ‘PCA’

CEBU CITY — Even as President Arroyo has ordered the National Power Corp. to suspend its collection of the power purchase adjustment (PPA) which utilities pass on to consumers, the Visayan Electric Co. (Veco) said it will continue imposing its counterpart fee in the absence of a formal notice from the Napocor.

The Veco counterpart of the PPA is the power cost adjustment (PCA) and it promised to scrap the fee only when there is a clear order.

"If Napocor will be mandated by law to scrap some of its fuel and power cost adjustments, which are the bases for our imposition of the PCA, then we will also have to scrap the collection of PCA," Veco said.

Veco officials said there is no other way for the company to generate funds to cover the cost of adjustment in purchasing power from Napocor than to charge it to consumers. – Freeman News Service