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Anational law that enables power utilities like the Visayan Electric Co. (Veco) to collect a ?universal charge? from consumers should be looked into further, said Cebu City Councilor Gerardo Carillo.
Carillo is drafting a resolution opposing Veco?s application for a provisional increase before the Energy Regulatory Commission (ERC).
The measure will be taken up in the council?s regular session next week.
Councilor Jack Jakosalem said this will be the collective statement of the council.
?There should be no provisional increase yet. It?s too soon,? said Jakosalem.
Carillo said Cebu City residents should be fully informed about the proposed provisional power rate increase.
?We will be opposing the increase until such time the sentiments of the Cebuanos are properly ventilated,? Carillos said.
Veco applied for a provisional increase of P0.0218 per kwh pending their application in the ERC for additional charges to their member consumers.
Veco said the increases would recover the cost of Veco?s purchase of new transmission lines.
Carillo urged city and provincial chapters of the Integrated Bar of the Philippines (IBP) in Cebu to study the ?universal charge? stated in Veco?s electric bills.
Carillo said he wants to know what case can be filed in court to challenge the law that supports the collection of the ?universal charge?.
The universal charge refers to charges to be collected from consumers as mandated by the ERC.
Included under this category are the missionary electrification charge of P0.0373 per kilowatt hour and the environmental charge at P0.0025 per hour.
Veco remits these amounts to the Power Sector Assets and Liabilities (Psalm) , which is owned and controlled by the government.
Veco remits about P6 million to Psalm every month, Veco?s chief finance officer Ma. Chona Tiu told the Cebu City council session last Wednesday.
Revenues from the environmental charge are intended as funds for the rehabilitation and management of watersheds.
Funds from the missionary electricification charge will be used to provide power to non-viable, far-flung areas in different parts of the country.
Carillo said the collection of these charges is a form of taxation without consultation.
?It would really appear that Veco has become a tax collector of the government. Many people did not know this tax was being collected from them and worse, it is for other areas,? Carillo said.
He said there are areas in Cebu City and Metro Cebu covered by Veco?s franchise which don?t have electricity because the utility could not afford it.
? It?s too soon for a provisional increase,? said Jakosalem, who chairs the energy committee.
