Iloilo businessmen reported they lost over P3 million in profits because of electrical fluctuations.

The complaint came after the wake of a nine-hour blackout in Iloilo last May 2, 2012 which caused delay in machine production and delivery of goods.

According to Joeboy Agriam, president of the Iloilo Chamber of Commerce and Industry, PECO should have informed them about the electrical problems. He further stated that the sudden fluctuation of electrical power might have caused severe damage to the appliances and equipment of both establishments.

Agriam said this during an interview at Kapehan sa Bali hosted by Manuel Mejorada.

Agriam added he had a dialogue with the ICCI members and other business organizations confirming that this is indeed a growing threat to Ilonggo businesses.

He urged Panay Electric Company (PECO) and the government to deal with the problem immediately.

"With the electrical problems paralyzing flights to and fro Iloilo as well as delaying airline reservations, how are we going to sell Iloilo as a tourist destination? Even first class hotels experience electrical and water shortages. That's another problem that should be answered by the Metro Iloilo Water District. I have visitors coming from Manila. What impressions are we giving them?" Agriam said.

The ICCI will again have a dialogue with those involved with the matter, said Agriam.

FRANCHISE

Earlier, Mayor Jed Patrick Mabilog said the City Government plans to open a franchise for another power distributor in order to address the problem.

However, Ted Ong of the Freedom from Debt Coalition said he's not sure how serious the City Government is with the statement.

He added that he is not sold out to the idea of opening another franchise without the proper safeguard mechanism in protecting consumers from the impact of having another player for it will have implications on the rates.

"It also shows the lack of long-term plan by the City Government in addressing the power situation including alternatives to the monopoly in ownership. Yet, I recognize the vast power of the local government in solving the power problem. They need to review the franchise of PECO and look into what it had violated in its franchise and take action," he said.

"Why not take over the ownership of PECO when it is the right step to take, given the amount that PECO overcharged consumers which is now being refunded," he added.

"We also need to look into who's interested to become the franchisee because given the lack of mechanism with the present set-up of the power industry, we might be confronting more problems in the future," he concluded.*with reports from Kathy Villalon