‘No to Meco franchise extension’
Lapu mayor, officials oppose Cebu City lawmaker’s bill, cite complaints vs. power firm’s services
LAPU-LAPU City Mayor Paz Radaza is opposing a bill filed by a lawmaker that seeks to renew the franchise of a utility firm operating in the city.
Radaza said Rep. Raul del Mar (Cebu City, north district) should have consulted the City Government before sponsoring a bill granting the Mactan Electric Company (Meco) another 25-year franchise,
“I wonder why del Mar sponsored the bill without endorsement from the City, considering that we are Meco’s major consumers,” she said in her regular news conference yesterday.
The bill has been approved by the Committee on Legislative Franchises, prompting Radaza, city councilors and barangay captains to go to the House of Representatives last Monday.
Radaza delivered a speech opposing the bill, saying city residents have complained about Meco’s services.
Not alone
Sought for comment, del Mar said any member of the House of Representatives can file a bill renewing the franchise of utility firms.
He said he sponsored the bill because he believes Meco, whose franchise will expire in October 2016, delivers good services and charges the lowest rate in the region.
“But I can only propose that. The ultimate decision is not mine,” he told Sun.Star Cebu in a phone interview.
“I’m not doing this alone. My interest is shared by the constituents of Lapu-Lapu City. What is good for Lapu-Lapu City is also good for other districts and Cebu Province,” he added.
Last Feb. 11, the City Council approved a resolution opposing the grant of a new franchise to Meco.
According to the resolution, the barangays held a dialogue with their constituents to find out whether the City should support the renewal of the firm’s franchise.
“The results of the dialogues and discussion with their respective constituents and revealed that most expressed disappointment, frustration and opposition to the renewal of the Meco ser- vices,” the resolution reads.
The Association of Barangay Councils also passed a resolution expressing discontent of barangay residents and recommending for the end of Meco’s franchise.
Complaints
For her part, Radaza criticized Meco for failing to supply electricity to island-barangays. She also lamented that residents in Olango Island experience frequent power outages.
She said del Mar should have talked with City officials to find out whether city residents are happy with Meco’s services.
“As elected officials, we are duty-bound to hear the concerns of the people,” she said, adding that Meco and del Mar’s act was disrespectful to the city.
In her speech before members of the Committee on Legislative Franchises, Radaza said the City will not endorse the renewal of Meco’s franchise unless it addresses the concerns of its consumers.
The Committee on Legislative Franchises approved the bill for plenary deliberation last Feb. 9.
The bill is co-authored by Rep. Gabriel Luis Quisumbing (Cebu, sixth district). Cordova, which is part of Cebu’s sixth district, is also served by Meco.
Del Mar asked Lapu-Lapu City Rep. Aileen Radaza to coauthor the bill, but she declined, saying a survey on Meco’s performance was still being done.
The bill states: “A cursory perusal of history of Meco’s franchise record shows a record of efficient, adequate and reliable light and power operations and service in its franchised areas. As Meco
records and documents will show, it can very well speak of a level of technical capacity and sound financial management that can sustain its operations over the longer term.”
It also noted that Meco “continues to enjoy the encouraging support of the communities in general, and the consumers in Lapu-Lapu City and the Municipality of Cordova in particular, even in the face of several power crises that hit the Visayas region in the past years.”
Meco serves 85,000 establishments in Lapu-Lapu City and neighboring Cordo- va town, 85 percent of which are in the city.
Meco vice presidentgeneral manager Gilbert Pagobo denied they deliver poor services, citing positive results of a recent technical and non-technical evaluation done by an international consulting firm.
He read to reporters the conclusion of the report made by Parsons Brinckerhoff Associates, which is based in New Zealand. “Meco is performing so exceptionally well,” he said.
Pagobo also explained that power outages in Olango Island and mainland happen when power supply is low, a problem that is beyond their control.
He said they have a plan to provide power supply to the islet nearest to Olango Island but the Department of Environment and Natural Resources has not granted them a permit.
Pagobo said it is impossible to install power lines in the farther islets, which is why the Department of Energy is the one initiating projects like installing solar panels to provide power supply to residents there.
He also stressed that Meco complies with all government regulations.
“Our services are delivered correctly and according to the rules prescribed by the Energy Regulatory Commission (ERC). Meco is highly regulated entity. We are regulated by the ERC and monitored by the Department of Energy. We are in compliance with all the regulations,” he said.