Veco To Raise Rates August 1

Veco To Raise Rates August 1 Cebu Rate Topic:

Mr. Lee

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Posted 30 July 2010 - 09:38 AM

Yet another increase in the already very high power rates. What the heck is making these rates so high? I just do not understand when salaries are so low when compared to first world countries where power costs much less most of the time. What other areas besides Cebu does VECO supply to, anyone know?

CEBU, Philippines - The Visayan Electric Company (VECO) will be raising the cost of electricity effective August 1 to comply with the new standards set by the Energy Regulatory Commission (ERC). VECO announced yesterday that the power rates will go up by a little over three percent. This means that a household that consumes 200 kilowatt hours (kWh) every month will now be paying P1,692.85 from the previous power cost of P1,633.97 or an increase of about P58.

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Boss Man

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Posted 30 July 2010 - 02:39 PM

Mr. Lee, on 30 July 2010 - 09:38 AM, said:

From my understanding its not the power company setting the prices so wont make much difference which company supply's.

Quote

Lacson said that the rate adjustment is not a form of increase by VECO, but is in Compliance with the requirements of the ERC set under the PBR.

roy2cebu

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Posted 31 July 2010 - 05:03 AM

It's not just in P'pines. There's outcry here in Oz as to the progressive increase in elec bill costs. People are calling 'talk back' radio stations with their concerns and resentment to these increases which don't seem to have good reason.
Maybe we should be thankful for the power cuts ..brown outs...at least it keeps the bill lower!

There is a conspiracy theory..regardless of country residence...but that's another story

Cebu Experience

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Posted 31 July 2010 - 05:31 AM

I don't like high prices either but I don't think salaries have much to do with it. Though I posted a message here related to that yesterday. Politicians may be trying to blame it on that.

There was prior suppression of prices. With the cost to produce electricity, IE OIL, I don't think the cost of electricity going up is very surprising. Remember the 70's when increase in fuel cost caused double digit inflation?

The Americans put a peanut man in the Whitehorse and we had a peanut shortage when he left. They put an oil man in and we are surprised oil prices go up? Only recession prevented it from getting much worse.

Of course there could be other reasons. There could be more invisible hands at play but not the kind Adam Smith had in mind.....