Group raises ‘overcontracting’ woes to NEA

LOCAL consumer group Power Watch Negros (PWN) has raised to the National Electrification Administration (NEA) the overcontracting allegation against Central Negros Electric Cooperative (Ceneco).

Its secretary general Wennie Sancho, in a letter to NEA Administrator Edgardo Masongsong dated February 4, said the issue of overcontracting is not only an advocacy of their group.

Sancho said it is primarily a struggle of Ceneco member-consumers who were victims of injustice, deceit and collusion of the members of the Board and key management officials.

“The evils of unused, excessive contracted power could be checked properly if the NEA and Energy Regulatory Commission (ERC) could institute policies that will strengthen the procedures in the procurement of power supply in order to prevent abusive electric cooperative officers to take advantage of the loose system to prejudice the member-consumers,” he added.

The letter stated that “stiff penalties should be promulgated and enforced to serve as a deterrent to any member of the Board or key management officers in committing acts like overcontracting of power supply that are grossly disadvantageous to the consumers.”

PWN claimed that the excessive financial effects of the overcontracted power deals amounting to millions of pesos are passed on to the shoulders of the unsuspecting member-consumers.

The group is concerned that hundreds of millions in higher cost were charged by Ceneco to the consumers as a result of intentional overcontracting, it added.

Sancho told Masongsong that they were informed that there are cases filed with the NEA.

“We hope that the NEA will not condone this mistreatment of cooperative member-consumers and accordingly punish the abusive officers of Ceneco,” he added.

Citing the NEA’s reply letter dated December 6, 2016 to Task Force Crusaders National Commander John Chong, Sancho said the agency appraised that there are already administrative cases filed in its office against the Board of Directors of Ceneco on the issue of unused excessive contracted power.

“On behalf of the consumers, we are requesting for a speedy disposition of these cases,” he appealed.

The PWN official further said that the ERC has already noted their opposition to the Electric Power Purchase Agreement (Eppa) between Ceneco and Palm Concepcion Power Corp. (PCPC).

He said their request for investigation on the alleged overcontracting of the cooperative was already forwarded to the Investigation and Enforcement Unit (IED) for proper action.

Unfortunately, until now no action has been taken on this issue of overcontracting, Sancho lamented, hoping that the NEA will conduct a parallel investigation.

“In order to protect the interest of the consumers, we are requesting for copies of the record of cases filed against Ceneco Board members and officers involving administrative and criminal complaints relevant to the issue of unused and excessive contracted power,” he added.

Ceneco officials earlier maintained that there was no overcontracting on the power supply agreements (PSAs) it has entered with power generation utilities.

Its corporate planning division manager engineer Norman Pollentes, who was also at the dialogue, said all power contracts entered by Ceneco will not be implemented if not approved by the ERC.

If there are moves to question the contract, it is now subject to the authority and credibility of the regulatory commission, Pollentes added.

The power distribution utility caters to the largest number of electric consumers in Negros Occidental including those in cities of Bacolod, Bago, Talisay and Silay, and towns of Murcia and Salvador Benedicto.

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