City hall, to intervene on Energy firm’s power hike

BY: NITZ ARANCON, Correspondent

CITY councilor Teodulfo Lao Jr. of this city expresses his concerns over Moresco Uno’s upcoming power rate increase.

This was the reason why Lao, coordinated with the City Legal Office in City hall, in an attempt to block the impending increase in electricity by Moresco Uno to 65 centavos per Kilo watts.

Lao is the Chairman of the Committee on Energy said. “The moment that Moresco Uno implements the increase, power consumers and 11 hinterland barangays of Cagayan de Oro namely Baikingon, Pagatpat, Canitoan, San Simon, Pagalungan, Pigsa-ag, Tuburan, Taglimao, Tignapoloan, Dansolihon and Tagpangi will be affected.”

According to Lao, that the looming increase in power rate of Moresco Uno, will result in privatizing the Mt. Apo Geothermal Plant in Davao by the government.

In a meeting with the committee on Energy yesterday, officials from Moresco Uno stated, that the Mt. Apo Geothermal Plant in Davao, was already bought by Fil Invest Corporation (FDC) from the Power Sector Assets and Liabilities Management (Psalm) and now the National Power Corporation (Napocor)

Moresco Uno purchases its electricity from Psalm through a contract that amounted to P3.00 per kilo watts.

But according to Lao, the contract of Moresco Uno and Psalm will expire on August 20, 2015.

As a result Moresco Uno will soon be purchasing their electricity through FDC, effective on August 20, at a price P5.00 per Kilowatts.

Lao sighted that this was the reason for the 65 centavos increase by Moresco Uno which will be shouldered by the energy firm’s power consumers.

Lao pointed out that the moment the Moresco Uno, starts its petition to the Energy Regulatory Commission (ERC), to increase their rate, the Committee on Energy of the City Council with the assistance of the City Legal Office, will submit their Position Papers to ERC which will serve as their intervention of City hall, in Moresco Uno’s application to increase its power rate.

“Moresco Uno cannot just increase their rates, because the Mt. Apo Geothermal Plant in Davao is renewable energy, it is powered by steam or heat coming from a volcano and not from fuel,” Lao said.