Duterte’s intervention on ‘excessive’ power contract sought

THE Power Watch Negros Advocates Inc. (PWNA) has asked President Rodrigo Duterte to intervene in the alleged excessive and incompetent power supply agreement entered by Central Negros Electric Cooperative (Ceneco) with Kepco-Salcon Power Corp. (KSPC).

In the letter received by the Presidential Legislative Liaison Office in Metro Manila last November 9, the group appealed to the President for a thorough investigation of the P232 million worth of unpaid unaccepted contract quantity of Ceneco with KSPC.

PWNA asked Duterte’s assistance to prevent the continuing financial burden of the amount from being unreasonably passed on to the member-consumers.

“We appeal that the implementation of the Energy Regulatory Commission (ERC) Order dated June 27, 2017 be held in abeyance and an in-depth investigation be conducted,” the letter stated.

“The member-consumers must not be made to pay for the wrong decision of the Ceneco Board who had caused the approval of the power supply contract,” it added.

On September 14, KSPC in a letter informed Ceneco of the ERC’s decision, stating the confirmation and provisional approval of load-factor rate, monthly reconciliation, and the authority to collect the differential billing worth P232 million.

The unpaid unaccepted contract quantity of 24 megawatts (MW) of Ceneco with KSPC covering the period of July 26, 2011 to November 25, 2013 will result to an additional charge of P0.8 per kilowatt hour (kWh).

The ERC ordered Ceneco to pay KSPC for the recovery of the said amount, which the former will charge to both residential and commercial consumers within 50 months.

However, no specific date of the start of payment was stated in the order.

On October 17, the Ceneco Board affirmed the earlier move of president Roy Cordova to put on hold the collection of P232 million worth of additional charges pending the clarification from the ERC.

The electric cooperative also awaits the decision of the ERC on several motions for reconsideration filed by various intervenors, including the Social Action Center (SAC) of the Diocese of Bacolod.

Wennie Sancho, secretary general of PWNA, Monday reiterated that Ceneco's move to temporarily defer the collection of additional charges is just a “band-aid solution” since it does not absolutely address the problem.

Sancho said they also appeal that responsible persons, particularly the members of the Board, including former president Arnel Lapore, who had caused the “overcontracting” be held accountable and punished.

“We are compelled to appeal to the President as last recourse so that the voice of consumers will be heard and he immediately put a stop to the continuing financial burden unjustly charged to member-consumers,” he added.

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