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Veco is awaiting rules on pre-paid power scheme
Although the Visayan Electric Company (VECO) has already identified the huge real estate sector as a potential market for the prepaid electricity scheme, the company is still waiting the Energy Regulatory Commission.
VECO chief operating office Jaime Jose Aboitiz said that it is still difficult for the company to take advantage of the "sachet economy" trend, as ERC still has to formulate the right IRR on this matter.
"We are still facing the issues on regulation in this matter," Aboitiz said in an interview recently.
Aboitiz said Veco has initially identified the real estate sector, especially those properties which are up for rental to embrace the prepaid electricity offer, despite the still expensive rate of electricity meter tool, but it would take time for VECO to offer prepaid electricity at this moment.
Besides, it's not like telecommunication products, wherein rates are expected to be at fixed level in the next few months, electricity rate however, is volatile and changing everyday.
In the United States, and some countries like Africa, prepaid electricity metering system has been practiced.
This time, the Philippines still has to familiarize this new set up, although Filipino consumers are already well oriented with the pre-paid revolution.
Supposedly, VECO is going to implement this pre-paid metering system within this year, but Aboitiz said the company still has to settle a lot of glitches in pushing the implementation of pre-paid electricity.
The company first entertained the concept of pre-paid electricity billing late last year, as part of its cost cutting measures.
"A lot of customers who are very expensive to maintain, we have to disconnect and reconnect every two months," Aboitiz said.
Aboitiz emphasized that disconnection and reconnection processes involves added cost to the company, and that prepaid concept is a better strategy to avoid these problems.
Aside from cutting cost of disconnection and reconnection works, Aboitiz said some customers may also benefit from the prepaid system, especially those who own apartments, boarding houses, vacation homes, condominiums, among others.
With regards to the IRR, Aboitiz said VECO has not assigned a target date for the implementation of the pre-paid billing system.
As of now, the company is still looking for more suppliers of prepaid electricity meter units, aside from the United States.
He said there are manufacturers of prepaid electricity units in Germany, China and Singapore.
Would-be prepaid electric consumers will acquire a keypad or prepaid electric meter, just like what is done by some cable operators which are offering prepaid services.
Once, ERC can formulate a separate regulation for pre-paid electricity trading, Aboitiz said it is already easier for the company to introduce this new concept of electricity retail.
Visayan Electric Company - News and Updates