THE Energy Regulatory Commission (ERC) has set for next month the hearing for Aboitiz-led Visayan Electric Co., Inc’s (VECO) application for its capital expenditure projects for 2016 and 2017, the regulator said in an order.
VECO is seeking approval for a budget totaling at least P2.334 billion, which it said would not have a direct impact on the current rates it is imposing on electricity users in the Visayas until the approval of the ERC.
It said the expenditure was “indispensable for the systematic and economic expansion and rehabilitation of VECO’s distribution facilities and ensuring compliance with safety, performance and regulatory requirements.
It said the benefits “will ultimately redound to the end-consumers in terms of continuous, reliable and efficient power supply.”
The distribution utility’s capital expenditure projects are grouped into network assets, other network assets and residual projects.
Of the projects, the biggest in terms of allocation was earmarked for customer service wires and metering equipment at P565.86 million. This was followed by distribution transformers for the two years at P477.03 million and poles and compatible unit at P373.4 million.
The company has also allotted P115.56 million for the Consolacion substation and P100.29 billion for the acquisition of a lot in Lahug.
Ahead of the trial on the merits of its budget, it is seeking provisional authority to implement its projects for the two calendar years.
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