ERC wants PECO to explain alleged lapses

The Energy Regulatory Commission (ERC) is directing the Panay Electric Co. (PECO) to explain its alleged lapses.

In a statement on Wednesday, the ERC said it ordered PECO to submit an explanation for the "apparent operational lapses found by the ERC Inspection Team."

The regulator directed, in an order dated November 26, PECO's directors and officers to explain why no administrative penalty should be imposed and/or criminal action be instituted against them for violating the pertinent provisions of the following:

• Philippine Distribution Code (PDC) 2017 Edition
• Amended Distribution Services and Open Access Rules (DSOAR)
• Amended Elevated Metering Center (EMC) Rules
• ERC Resolution No. 12, series of 2009 or Guidelines for the Accreditation of Satellite Laboratories of Meter Shops

"Based on the findings of the ERC technical team that conducted the ocular inspection on the electric distribution system of PECO, the latter committed lapses in the operations and maintenance of its distribution system thereby posing danger and risks to the lives and properties of its consumers,” ERC Chairperson and CEO Agnes Devanadera said.

The ERC's Inspection Team has found the following:

• PECO’s protective devices were not properly rated and designed
• some poles were found leaning and in unsafe positions
• some meters were found to be clustered and installed in an Elevated Metering Center (EMC) without securing prior ERC approval

It was further uncovered that the Certificate of Authority (CA) for PECO’s meter shop expired on November 18, 2019, and PECO has not filed the application for the renewal of the same, according to the ERC.

"PECO must submit its explanation within 15 days from receipt of the Commission’s Order pursuant to the relevant provisions of the Electric Power Industry Reform Act (EPIRA).  We need to accord PECO the opportunity to explain its side before we evaluate the extent of their liability for the operational lapses that were discovered," Devanedera said.

GMA News Online has reached out to PECO for comment on the matter but no response has been received as of this posting.

PECO has been the sole power distributor of Iloilo City for the past 95 years since.

PECO and Enrique Razon-led MORE Power locked horns over the rights to be Iloilo City's power distribution utility. — MDM, GMA News