PECO says it invested P1.8B for Iloilo City’s power distribution network

The Panay Electric Company (PECO) said it has invested heavily for its power distribution network in Iloilo City amid claims by rival More Electric and Power Corporation (MORE) that it took over decrepit distribution facilities.

In a statement, PECO administrative manager Marcelo Cacho said the utility firm has invested and maintained a P1.8-billion asset base throughout the life cycle of its last franchise or from 1994 to 2019.

PECO’s franchise expired last year. The Congress granted MORE the franchise to distribute electricity in Iloilo City last February.

Cacho said within the span of 1994 to 2019, PECO invested P260 million for substation projects and P253.439 million for primary line and line hardware.

The other major item in PECO’s capex spending had been for sub-transmission lines and line hardware amounting to P131 million and for poles reinforcement and replacement for P103 million.

Other capital spending went to the construction of a new building for P80 million; distribution transformers for P66 million; secondary lines and hardware for P53 million; installation of new and additional meters for P45 million; energy management control systems (EMCs) for P27.66 million; diversion road clearing project for P26 million; purchase of vehicles to support operations for P16.82 million; and the installation of information technology (IT) equipment and software for P15.70 million. 

PECO said it had also installed smart meters and distribution reclosers contrary to MORE's allegation of decrepit facilities.

Smart meters could help customers understand their billings and manage their electricity usage, it said.

PECO also said that its customer base grew from 43,804 in 1994 to 52,257 in 2004 and now to 64,397 as of May 2018.

The company's rising customer base meant that power demand grew from a peak demand of 35.7 megawatts in 1994 to 116.1 megawatts in 2018.

“The constantly increasing number of customers served by PECO; along with the growth in power demand to serve their needs warranted continuous investments from the company, and that alone could belie claims of non-investments in the past 40 to 50 years as what MORE had intended to portray illogically and without basis,” the company said. — Ted Cordero/BM, GMA News