I'm not sure if Iloilo City's local chief executive is mindful of the expensive electricity rate of Panay Electric Co. (PECO) when it coined the slogan "My City, My Pride". Although unwritten in billboards, PECO's exorbitant electricity charges left a permanent impression among Ilonggos and visitors.

A visiting foreign national in Iloilo City two weeks ago was shocked to learn of our prevailing electricity rates. The city takes pride in it while consumers could not help but become masochistic by accepting the monthly customary beating.

Now at P10.57 per kilowatt-hour, this means a household that consumes 195 kilowatt-hours will pay P2,043 monthly to PECO.

A comparative rates monitoring that we at Freedom from Debt Coalition undertook, revealed that PECO remains at the top rank for highest effective rate among power distribution utilities in the Philippines.

Manila Electric Co. (Meralco) which serves the National Capital Region has only P9.89/kWh effective rate; Cebu City, only P9.63/kWh; Davao City, only P7.30/kWh; General Santos, only P6.85/kWh and Bacolod City, only P5.54/kWh.

These show that those residing in Iloilo City pay the highest electricity rates in the entire country. This is despite the presence of a coal-fired power plant that promised to provide cheap power rates. Their promise has been broken several times but such has become useful for politicians who pushed for the establishment of the coal-fired power plant. These public officials think that without the said power plant, we cannot achieve progress; and without progress, we cannot reclaim our title Queen City of the South.

Can we really say that we have progress now that the coal-fired plant is already operational and displayed as a tourist attraction, seen by those entering the Iloilo City port? Yes, according to those who support it and those who can afford to pay expensive electricity. But, that plant is not there just to supply the city's power needs but to earn billions of profits through a contract. That's why we are paying for all of it.

Look at the items in the monthly bill. It is the generation charge that is the highest at P7.90/kWh, followed by the distribution charge at P1.22/kWh. The generation charge is leveled to consumers by Panay Energy Development Corp. (PEDC), operator of the coal-fired plant, and Panay Power Corp. (PPC), operator of the diesel plant. These companies were touted as the savior of Iloilo City but at a good price.

The distribution charge, on the other hand, goes to PECO. The charge has recently increased from P0.86/kWh to P1.22/kWh as a result of PECO's compliance to the Performance-Based Regulation of the Energy Regulatory Commission (ERC).

It is a mechanism that will measure the quality of PECO's performance or delivery of service to consumers. The increase means that PECO will charge to consumers the amount they will use to construct a new office building, buy luxury vehicles for executives, and upgrade facilities and equipment.

So it is us consumers who chip-in money on a monthly basis so that PECO could comply with ERC's standards. What an excellent idea by the ERC in favor of private business. However, PECO has a track record of being abusive in handling consumers and their concerns. The complaints by individual consumers are piling up at PECO like misreading of meter, charging inaccurate amount of monthly consumption and similar cases.

Why are these malpractices being tolerated by the local government? Your guess is as good as mine. After all, PECO has become excellent in terms of corporate social responsibility (CSR) by donating housing units for the less fortunate through Gawad Kalinga. So, on one hand, PECO victimizes the rich and the poor alike with its exorbitant charges and abusive practices; on the other hand, it volunteers to give housing units to the selected poor.

This is an excellent practice and PECO in collusion with our local politicians has become an expert in fooling the Ilonggos.*