Ceneco official: Murcia consumers to bear tax burden

CENTRAL Negros Electric Cooperative (Ceneco) general manager Sulpicio Lagarde Jr. said the consumers of Murcia will bear the burden of the real property taxes after the court denied their bid for a preliminary injunction.

Lagarde said Thursday that the Regional Trial Court (RTC) denied their bid for a preliminary injunction on the demand of Murcia town for Ceneco to pay P16.182 million in real property taxes from its electrical poles.

"Whatever happens it would still be advantageous to Ceneco," Lagarde said.

He added that in case there will be a final court order for Ceneco to pay such taxes, they will have to present it to the Energy Regulatory Commission (ERC).

The ERC is then expected to order Ceneco to include in their tariff the amount to be paid to the municipal government of Murcia.

"Ceneco will pass it on to the consumers because we don't have funds to pay for it. We are opposing the taxes being collected by the Murcia municipal government because right now, we have no provision for it," Lagarde said.

He said that Ceneco, through their lawyer, will file a motion for reconsideration on Judge Franklin Demonteverde's denial on December 26, 2013 for the issuance of the preliminary injunction asked by Ceneco.

Demonteverde said Ceneco's right to an injunctive relief has not been clearly demonstrated.

The case stemmed from the demand of Murcia for the Banco De Oro Lacson Branch in Bacolod to deliver to it money from Ceneco's account as payment for real property taxes due for its electric poles.

Lagarde said that if there is already a court order and Ceneco will pass on the taxes to the Murcia consumers, it will be the Murcia municipal government that will be answerable to its constituents.

"Only the consumers in Murcia will shoulder such payment through their electrical bills," Lagarde said.

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