"THE Power Watch Negros is now conducting a study on the ramifications of the joint venture proposal between Central Negros Electric Cooperative (Ceneco) and MORE Electric Power and Power Corporation (MORE Power) with the end in view of asserting the rights and advancing the welfare of the consumers in the event that it will materialize."
This was stressed by Wennie Sancho, secretary-general of Power Watch Negros Advocate (PWNA), on Thursday, March 2, after he was informed that there was a letter of intent sent to the National Electrification Administration (NEA) for a review of the proposed joint venture agreement (JVA) of Ceneco and MORE Power.
"I think it’s now making progress because there was a letter of intent sent to the NEA for a review, and whatever the recommendation of the NEA, it will start the JVA," Sancho said.
He said the Power Watch has been actively demanding better power procurement practices and more efficient and reliable electricity services from Ceneco, adding that the experiences of consumers with bill shock and all forms of pass through charges from anomalous power supply agreements only show that consumers do not have access to affordable and reliable electricity.
"They still face huge inconveniences and shoulder the expensive and volatile cost of electricity under the present management of Ceneco," Sancho stressed.
Sancho noted that of the 210,861 consumers in the franchise area of Ceneco, about 129,891 or 61 percent are consumers from Bacolod City.
Sancho said Ceneco services approximately 1,068,948 people in its franchise area, or around 1/3 of the Negros Occidental population.
He said more customers come from Negros Occidental province making up around 70 percent of the total customer connections. As for power use, approximately half of the island's electricity is used by customers of Ceneco.
"This data will be vital in the formulation of the principles of this JVA considering the scope and magnitude of the project and the people impacted by the JVA," he added.
Sancho said JVA is only one of the options provided in the NEA Guidelines classified under the framework Private Sector Participation (PSP).
"NEA has the final say as all contracts to be executed must be reviewed by NEA. We are hopeful that the JVA should contain a strong monitoring and prevention of market power abuse and not merely impose a set of behavioral rules," he said.
He added that consumers should not be made to pay for electricity they did not consume. With the inflation of electric prices, onerous provisions such as take-or-pay guarantees must be removed to eliminate graft and corruption in Ceneco.
If the letter of intent submitted to the NEA is acted upon favorably, Sancho said that it will change the course of the history of the power industry in Negros.
"If the principles we had cited are considered in the JVA, there is no reason why we should not support it. But for now, Power Watch will be watching," he said.*