Rama Opposes Brgy. Ermita’s Use of P2M Share

The Cebu City government has earned over P2 million as profit share from a power plant operated by Cebu Private Power Corporation in Barangay Ermita.

The amount kept by the Department of Energy has reached P2.258 million as of June 25, 2012.

Ermita officials wanted to use the amount to install security cameras within the barangay to help in the maintenance of the peace and order. The barangay officials requested the members of the city council to allow the use of the money to purchase Closed-Circuit Television (CCTV) cameras for their barangay.

In a resolution, Ermita barangay officials headed by Captain Antonieto Flores explained that the installation of CCTV cameras in their area is necessary because of the Carbon public market.

Mayor Michael Rama is opposed to the request. The mayor said he would use the amount in the electrification project to energize other parts of the city.

Pursuant to Energy Regulation 1-94 as amended by Section 66 of Republic Act 9136, power generating companies are required to provide financial benefits to its host communities by setting aside one centavo per kilowatt hour of its total electricity sales. It is stipulated in the guidelines that the amount to be released to the local government units, where the power plants are located, shall be used to fund electrification, development and livelihood, reforestation, watershed management and health and environmental projects.