Power suit
Taiheiyo Cement files a case against Veco for ‘illegal’ electric disconnection
Taiheiyo wants the defendants to pay it P45 million in total damages Veco, for its part, refuses to comment until it has received a copy of the case
THE Visayan Electric Company (Veco) is facing a damage suit over the allegedly “unlawful disconnection” of the electric power of a Japanese cement firm in San Fernando, Cebu from its sub-transmission line last April.
Taiheiyo Cement Corp., through the Angara, Abello, Concepcion, Regala and Cruz law firm, filed the complaint before the Regional Trial Court in Cebu City against Veco and Sebastian Lacson, Veco chief operating officer.
Taiheiyo wants the defendants to pay it P45,092,400 million in total damages.
“The acts of defendants (Veco and Lacson) are against human relations and constitute abuse of right and done with malice...” read Taiheiyo’s complaint.
Veco, for its part, refused to comment, saying it has yet to receive a copy of the case.
“Once we get it, our legal department will study it and only then can we comment,” read the text message of Veco corporate communications manager Teresa Gonzales Sederiosa.
Power needs
Taiheiyo needs 13 megawatts of power for its operations. It used to buy electricity from various power suppliers through the power transmission line to the cement firm’s plant in San Fernando.
Taiheiyo was also directly connected to the NagaSibonga-Dumanjug 69-kilovolt power line owned by the National Transmission Corp. (Transco).
In 2010, Transco sold its power line to a consortium composed of Veco and the Cebu Electric Cooperative I, making Taiheiyo one of its customers for the use of its sub-transmission line.
Veco began sending Taiheiyo its monthly power bill, amounting to P14 million. The power consumption includes gen- eration and transmission charges.
But Taiheiyo protested and filed a dispute reso- lution, which is pending before the Energy Regulation Commission.
Last April 15, First Gen- eral Energy Solutions, one the electricity providers of Taiheiyo, received a letter
from Veco stating that the distribution wheeling services to the cement firm would be discontinued if no “distribution wheeling services agreement” was signed by the end of April 2014.
Disconnection notice
Taiheiyo later informed Veco that the signing of the wheeling services agreement would cause them “great convenience” since the cement firm is a “multi-supplied contestable customer.”
Taiheiyo also informed Veco about the pending dispute with the ERC on the appropriate rate to be charged for the distribution and wheeling services.
Still, Taiheiyo said it received a notice of disconnection from Veco last April 25. At 12:20 a.m. on that date, Veco representatives disconnected Taiheiyo from the Naga-Sibonga-Duman- jug 69-kilovolt power subtransmission line, which resulted in total blackout in the cement firm’s manufacturing plant.
Taiheiyo filed a complaint before the ERC, which issued an order to reconnect the power. The petitioner said Veco, being a public utility franchise holder for power distribution, is mandated to make available its distribution system to Taiheiyo.
“It is clear that Taiheiyo has a clear and unmistakable right over the use of the 69-kilovolt Naga-Sibonga-Dumanjug subtransmission line,” the complaint read.
It also alleged that Veco violated its obligation to Taiheiyo not to impede the cement firm’s right to use Veco’s subtransmission line.
Taiheiyo said it incurred P245,054 in penalty charges to its retail electricity supplier when Veco disconnected the cement firm from its sub-transmission line. It also incurred a loss of P852,020 for running its generator set from April 26 to 30, 2014.
Compensation
Taiheiyo said it paid P348,329 as service fees for three vessels it chartered to deliver cement to offshore markets.
The cement firm said it also paid P899,333 as wages of its employees, even to those who did not report for work, or even those whose work was disrupted by the power disconnection.
Taiheiyo also estimated the loss of its sales margin from April 26 to 30, 2014 to have reached P40,147,662.
The cement firm asked the court to order Veco to pay it P42.49 million for actual damages; P1 million for moral damages; another P1 million for tortuous interference; P300,000 for attorney’s fees; and P300,000 for exemplary damages.