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Bacolod City, Philippines Tuesday, November 14, 2017
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Palace asked to probe
P232-M Ceneco deal

The Power Watch Negros Advocates Inc. submitted a complaint to the Office of the President about the P232 million power supply contract of the Central Negros Electric Cooperative from Kepco Salcon Power Corporation last week.

In an interview yesterday, PNWA secretary-general Wennie Sancho said they submitted the complaint to the President's office for an in-depth investigation on the alleged unutilized and excessive power supply contract that will be paid by Ceneco consumers.

The P232 million, tagged as “unnominated contract quantities”, will cause a 0.6 to 0.8-centavo per kilowatt hour increase and the payment will be staggered for 50 months, the complaint stated.

However, Ceneco shelved its collection of the P232 million differential billing recovery of Kepco-Salcon Power Corp. for the period of July 26, 2011 to Nov. 25, 2013, as approved by the Energy Regulatory Commission on Oct. 21, it also said.

The letter dated November 8 by the Presidential Legislative Liaison Office, was addressed to Adelino Sitoy, Presidential Adviser on Legislative Affairs, and submitted the following day to Malacañang.

It said that the consumers are being compelled to pay for the unused power supply and this is disadvantageous on their side as they are “already reeling from the high cost of electricity bills.”

Sancho also said the members of the board of directors who signed the contract should explain the issue to the consumers, especially because they do not have the knowledge about it.

Sancho said they are calling for an in-depth investigation, led by the Office of the President. The Department of Energy has also been sent a copy of the letter.

The DOE has informed Sancho, through a letter, that it has already asked Ceneco to provide the agency information on the transactions and the details of his complaint.

Under ERC Case No. 2013-141 RC, Ceneco is mandated to collect at the rate of P0.0817 per kilo watt-hour for 50 months, or until the P232 million is fully recovered.

This was after Ceneco Board president Roy Cordova directed the management to hold in abeyance the collection of the amount until ERC positively responds to the query sent by Ceneco on October 12, seeking clarification about the date of the commencement of collection, Cordova said. *MLG

 

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