THE Central Negros Electric Cooperative (Ceneco) has put on hold the collection of the P232-million worth of additional charges for October billing, its top official said Friday, October 13.
Ceneco president Roy Cordova told SunStar Bacolod that he wrote to General Manager Sulpicio Lagarde Jr., asking the latter to postpone the implementation of the Energy Regulatory Commission (ERC)’s order pending the decision of the Board.
The collegial body will discuss the matter during its meeting on October 17 since the exact date of payment to Kepco-Salcon Power Corp. (KSPC) was not stated in the order.
“The Rate Committee will already start the computation for October billing thus, I immediately asked the postponement of the implementation,” Cordova said.
“If we are going to wait for the scheduled Board meeting, the increase will already take effect by October 16,” Cordova added.
On September 14, KSPC, in a letter, informed Ceneco of the ERC’s decision dated June 27, 2017, stating the confirmation and provisional approval of load-factor rate, monthly reconciliation, and the authority to collect the differential billing worth P232 million.
The order stated that Ceneco is directed to pay KSPC for the recovery of the unpaid unaccepted contract quantity of 24 megawatts from July 26, 2011 to November 25, 2013 which will result to about P0.8 per kilowatt hour in rate increase.
The amount will be charged to both residential and commercial consumers of Ceneco for 50 months.
In a press conference on Wednesday, October 11, Ceneco said it will push through with the payment for KSPC on October 25 unless the ERC reverses its decision with the motion for reconsideration filed by the Social Action Center (SAC) on October 4.
Supposedly, the collection for additional charges on October 16 will be paid to KSPC on October 25.
Cordova, however, recognized the need for the Board to first decide.
He said they will not implement something not yet clarified as it will be injustice on the part of consumers.
It means that no additional charges will reflect on consumers’ bill this month.
“I am taking the risk. I will face and answer the Board for initiating the cancellation of the supposed collection of additional charges,” Cordova said, adding that the management has positively responded to his appeal.
Lagarde, for his part, told SunStar Bacolod that he sent an inquiry to the ERC on October 12 attaching the letter of Cordova.
He said the management believes that it is good if the order will not be implemented.
“However, I mentioned during the press conference that there will be corresponding penalties if the order will not be followed without valid reasons,” Lagarde said.
He added: “If the Board will pass a resolution deferring the implementation, whether or not there is a reply from the ERC regarding our inquiry, then we will not collect additional charges.”
“By that time, I am already overruled and I have to abide with the wishes of the Board. The resolution is already a policy and it is beyond my authority,” he said.
During the Board meeting, Cordova said he will push for a resolution resolving the question whether to continue postponing the implementation of the order pending the result of SAC’s motion for reconsideration.
“Once the Board has decided, we can now be clarified on whether to collect, or not, additional charges for succeeding bills," he added.
The Power Watch Negros also hit the ERC ruling granting Ceneco and KSPC the authority to collect P232 million from member-consumers as unnominated contract quantities.
The electric power purchase agreement was proven to be grossly disadvantageous to the consumers, they added.
As this developed, Bacolod City Lone District Representative Greg Gasataya has sought an inquiry on the issue.
Last Tuesday, he filed Resolution 1404 urging the House committee on energy to look into the order issued by the ERC.
Gasataya cited that some 1,069,073 residents in the cities of Bacolod, Silay, Bago, Talisay and the municipalities of Salvador Benedicto and Murcia will be greatly affected by the increase in price of electricity.
“The ERC order for Ceneco to increase prices requires legislative intervention to ensure affordability of utilities and the protection of consumers," he added. (with reports from Teresa D. Ellera)