Honeyman: More Ceneco woes

THE National Labor Relations Commission (NLRC) Seventh Division in Cebu has reaffirmed the finding of the Bacolod labor arbiter that the decision by Central Negros Electric Cooperative (Ceneco)’s board to fire Sulpicio Lagarde in November 2014 was illegal.

The NLRC also ordered the seven Ceneco board members who supported Lagade’s sacking to pay P2,260,541.77 in backwages, 13th month pay, moral and exemplary damages. The concerned board members are Arnel Lapore, Michael Maravilla, Paul Lizares, Joyce Martha Cuenca, Zenaida Lacson, Vicente Tan, and Robert Javellana. This means they each have to pay around P320,000.

Wow! The last time I asked about the emoluments of board members, I was told that they received P2,500 for each meeting they attended.

This raises an important question about board members’ liability. If the NLRC believes that board members are personally liable for the adverse consequences of bad decision-making, where does that leave us with the woeful 2011 contract approved by the board that was signed by President Arnel Lapore?

Under the terms of this contract with Kepco SPC Power Corporation, Ceneco has to pay P232 million for electricity that was contracted for but was not used.

The Energy Regulatory Commission (ERC) is currently considering that issue. If the ERC concludes that Ceneco is liable for the P232 million, does this mean, using the NLRC finding, that it is the board members who approved the contract with Kepco SPC, who have to pay the P232 million between them? It would be wrong for the Ceneco consumer to be penalized for the board’s lamentable decision-making.

The question of systems losses needs to be addressed again. The recent history is that in August 2014, the Ceneco board arrived at a resolution to try to reduce systems losses once and for all. This resolution made jointly by the board and the then General Manager Lagarde involved “naming and shaming” those who stole electricity from Ceneco.

This was to be implemented with effect from March 2015. Anyone caught pilfering thereafter would have to pay for a newspaper advertisement in which they admitted their wrongdoings and promising not to repeat the offense.

I have always been unhappy about quoting systems losses in percentage terms. Ceneco consumers’ consumption of electricity in the past decade has doubled. If the percentage systems loss remains the same, the quantity of systems loss has also doubled. I cannot believe that the enormous amongst of systems losses are due primarily to those who use jumper cables to steal electricity. There must be some “big fish” who are also stealing electricity.

The value of electricity which comprises systems losses approaches P1 billion per annum.

According to Ceneco, the peak percentage systems losses were 15.98 percent in March 2015, long after Lagarde’s precipitive departure. Since there is a “cap” of 13 percent, any systems loss greater than this has to be paid Ceneco, not by the consumer.

Incidentally, the “cap” several years ago, was “only” 12 percent. Why was it raised from 12 to 13 percent?

Ceneco president Arnel Lapore has predictably filed another motion for reconsideration to the NLRC but now that there are two resolutions, one confirming the other, it seems unlikely that his motion will be fruitful.

Another challenge is that Ceneco announces that it will hold a referendum sometime this month or up to January 15, 2016 to determine whether member consumers want Ceneco to be under the National Electrification Administration (NEA), the Cooperative Development Authority (CDA), or the Securities Exchange Commission (SEC).

We need to be educated so that we can understand the consequences of the alternatives.

At present, Ceneco is under the NEA.

The other Sunday many had an unscheduled eight-hour brownout. The sad thing was that it was not news in any of the media.

This confirms that we are still deeply enmeshed in the third world.

We must do better!

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