BACOLOD CITY – The rates of Negros Power are in accordance with the Certificate of Public Convenience and Necessity (CPCN) granted by the Energy Regulatory Commission (ERC), and all regulatory rules and laws, its president, Roel Castro, disclosed recently.
Castro’s reaction was in response to a resolution authored by Councilor Jun Gamboa, which was approved by the Sangguniang Panlungsod of Bacolod, asking an immediate explanation from Castro, as to why Negros Power continues to collect the Reinvestment Fund for Sustainable Capital Expenditures (RFSC) shown in the monthly billings of power consumers.
“We received the official copy of the resolution. Negros Power will address the issues raised by Councilor Gamboa at the right and appropriate time,” said Castro, in a statement issued by Negros Power.
The RFSC, created under Energy Regulatory Commission (ERC) Resolution number 20 series of 2009, allows electric cooperatives (ECs) to collect capital contributions from their members-consumers to amortize or pay-off debts associated with the expansion, rehabilitation or upgrading of the existing electric power system in accordance with the ERC approved capital expenditure (CAPEX) plan.
In his sponsored resolution, Gamboa underscored that Negros Power is not an EC but a private stock corporation registered under the Securities and Exchange Commission (SEC) and, therefore, the inclusion of the RFSC charge of P0.1518 per kilowatt-hour (kWh) raised legal and ethical questions.
The approved SP Resolution highlighted the fact that the inclusion of the RFSC in the consumers’ monthly billings is an item authorized only for ECs under ERC Resolution # 20, not with Negros Power which is a private stock corporation.
Gamboa, currently Chairman of the SP Committee on Human Rights, stressed that access to electric power is a fundamental human right endowed with transparency and accountability and the collection of the RFSC without a corresponding regulatory provision could unduly burden consumers.
Negros Power has been given ten days from receipt of the resolution to formally respond and clarify the basis of its RFSC collections. (Gilbert Bayoran via tvds)