Bacolod City – The financial standing of Central Negros Electric Cooperative is classified by the National Electrification Administration under “yellow” category, NEA Administrator Emmanuel Juaneza said.
This means that they are watching Ceneco closely, he said, adding that they are looking at the financial standing of the power utility firm, as well as legal requirements with the vision that eventually, they will be able to properly “re-float” it because of previous incidents like the power supply agreements that were entered upon in the past and the impact is now being felt by consumers.
Juaneza said that based on their experience with other electric cooperatives, it would take about three to four years to sustain and re-float them.
They have already intervened in the management and operation of Ceneco with NEA as project supervisor and Ervin Stan Leo Ticar as acting general manager, he said.
Ticar said the price of electricity is beyond their control. It is so volatile that even the government cannot assure that it will go down.
He appealed to the consumers to conserve energy and also assured that they will consider seriously any concerns they will raise with Ceneco.
Juaneza was guest speaker during the 44th Annual General Membership Assembly of Ceneco on Sunday.
Meanwhile, consumer advocate Wennie Sancho said the alleged anomalous transaction involving the 20 megawatt power sales contract (PSC) with Palm Concepcion Power Corporation (PCPC), should be charged against the personal account of the Ceneco Board of Directors, who are the culprits behind the unprecedented financial injuries to all its consumers.
The PCPC 20 MW PSC could not have happened at all, had the Ceneco BOD been honest and intelligent enough to negotiate with Unified Leyte Geothermal Energy Inc. (ULGEI), which was the second responsive bid at P3.31/kWh after determining KEPCO’s inability to fulfill its offer of P3.29 due to abrupt spike in world coal price index as of April 12, 2021 (scheduled opening of bids), Sancho said in an open letter to Ceneco consumers.
Sancho together with former Bacolod councilor Wilson Gamboa Jr., again formally requested acting Ceneco general manager Ervin Stan Leo Ticar and Ceneco president Jojit Yap for authenticated original duplicate of different documents earlier requested by Councilor Claudio Puentevella like its P135 million loan agreement, contract with Palm Concepcion Power Corporation, board resolutions and other records involving Ceneco’s contracts with power suppliers.
Ticar said the high cost of electricity is not only felt in Bacolod, but the whole of Western Visayas.
He said the power supply contract with Palm Concepcion Power Corp. went through the bidding process. Out of 11 bidders only three replied and the lowest was PCPC whose rate is being regulated by the Energy Regulatory Commission.
On the demand of power advocates for Ceneco to be registered with the Cooperative Development Authority (CDA), Juaneza said that even if an electric cooperative registers with the CDA or the Securities and Exchange Commission as provided under R.A. 10531, it will still be under the control and supervision of NEA. (Chrysee Semillano via tvds photo by tvds)