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CENECO rate lowered

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BY CHRYSEE G. SAMILLANO

Power Watch secretary general Wennie Sancho and Teddy Macainan, Consumers Advocate for Reform secretary general (l-r)*

The average residential rate of consumers of Central Negros Electric Cooperative for the billing month of January is P7.5990/kWh, or a decrease of P1.177/kWh from last month’s rate.

Christian John Villena, Ceneco Corplan Division Chief, yesterday said that last month’s rate was P8.7761/kWh. He attributed the decrease to the reduction in generation, transmission charges and other charges amounting to P183.225 million.

This is the result of the appeal made by Ceneco and other electric cooperatives in the Visayas after the rates spiked following the damage caused by the Department of Public Works and Highways on the Cebu-Negros submarine cable last June 2021, he said.

Villena said that after the incident the power rates of the Negros and Panay distribution utilities went up.

This is the third and the biggest rate adjustment they have received. The power adjustment last November 2021 was P11.3 million and P85 million in December, which have all been implemented.

‘NOTICE OF DEFAULT’ WORRIES POWERWATCH

Meanwhile, the secretary general of Power Watch Negros Advocates Inc. is asking the members of Board of Directors of Ceneco for their solution on the “notice of default” issued by Kepco-SPC Power Corporation to the power utility firm.

Wennie Sancho yesterday said Kepco-SPC issued a “notice of default” to Ceneco in line with the 20-megawatt power supply contract extension between the two parties for a period of one year from May 31, 2021 to May 30 this year.

The warning of Kepco-SPC in its letter to Ceneco that it will be compelled to terminate its power supply obligation if Ceneco fails to fully settle its financial obligation amounting to P280,298,294.20 constitute a clear and present danger to the power utility firm and its member-consumers, he said.

The incumbent BOD, which approved the contract, appears to be unaware of the consequences that could wreck widespread havoc, Sancho said.

“It is possible that pandemonium would ensure inflicting power outage or blackout that could have dramatic repercussion to our economic stability that could paralyze or panic large segments of our community,” he said.

Sancho said this problematic event would not have happened if the BOD had been prudent enough to approve the P3.29/ kWh contract that was declared as the lowest calculated bidder. Instead, it opted for a one-year extension contract at a price of P5.6947/kWh.

NO POWER OUTAGE

Ceneco president Jojit Yap assured the member-consumers that there will be no power outage in their franchise areas. The Energy Regulatory Commission wrote Ceneco that in contracts not approved by ERC, the rates to be used is the Time of Use (TOU) rate which is lower.

Yap said that as early as October, they have been in negotiations with other power suppliers including WESM in case Kepco-SPC terminates its power supply obligation to Ceneco.

However, the P280 million cannot yet be considered their financial obligation to Kepco-SPC since their contract has not yet been approved by ERC, she added.*

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