THE Social Action Center (SAC) of the Diocese of Bacolod City filed a motion for reconsideration last week on the Energy Regulatory Commission (ERC) ruling related to the supplemental agreement between Kepco-SPC Power Corporation (KSPC) and Central Negros Electric Cooperative Inc. (Ceneco).
SAC legal counsel Vicente Petierre III said Sunday, they filed an appeal on October 4, after the ERC approved the application for the approval and confirmation of the load factor-based pricing scheme on a monthly reconciliation of the unaccepted contract quantity of the agreement with motion for the issuance of provisional authority.
The application was filed in 2013 and SAC was one of those who opposed.
The ERC order dated June 27, 2017 was signed by its chairman and chief executive officer Jose Vicente Salazar, and commissioners Alfredo Non, Gloria Yap Taruc, Josefina Patricia Magpale-Asirit, and Geronimo Sta. Ana.
The order stated that Ceneco is directed to pay KSPC for the recovery of the unpaid unaccepted contract quantity from July 26, 2011 to November 25, 2013, the total amount of P232,010,090.
Ceneco is authorized to recover from its consumers the amount of P232 million at a monthly rate of P0.0817 per kWh for a period of 50 months or until such time that the full amount have been recovered, the order further stated.
The order stated that Ceneco is directed to submit to the ERC, along with the requirements under the Automatic Generation Rate Adjustment (Agra) Rules, a report on its monthly payment to KSPC and collections from its consumers for monitoring and verification purposes.
Ceneco is also directed to monitor its demand and nomination on a monthly basis in order to minimize, if not, eliminate the utilized energy in a way that said energy shall not exceed five percent of Ceneco actual nomination.
Petierre said they received the order on September 20 and they were given 15 days to submit the motion for reconsideration.
He said they filed an appeal because the signatory of applicant Ceneco has no authority to sign the petition and failed to comply with the rule on certification of non-forum shopping, and the unnominated quantity or power supply sold by KSPC to Ceneco by way of a contract is grossly disadvantageous, hence should not be charged to the consumers.
Petierre explained that the unnominated quantity is the power supply which was not used by Ceneco, but Ceneco will pay it to KSPC.
He said he was informed that by October 25, Ceneco will impose the order and they will pass it on to the consumers.
“We have a motion for reconsideration and under the law if there is a motion for reconsideration, you cannot implement this. We cannot see the rationale and wisdom of Ceneco always entering into a contract without a proper study," he said.
Ceneco general manager Sulpicio Lagarde Jr. said this case was filed in 2013, and a series hearings were conducted, but SAC failed to submit its position paper.
He said that by October 25, they will implement the order and there will be a power rate increase of P.06 to P.08 centavos per kWh.
“The motion for reconsideration is not an order. If we will not implement this, we can be charged administrative penalties,” he added.