Ceneco Never Promised Low Rates; Contract with PEDC in Order
Central Negros Electric Cooperative, Inc. (Ceneco) President Arnel Lapore clarified December 7 in a press conference cum Christmas party with media that its pricing mix is guided by the Electric Power Industry Reform Act (EPIRA) therefore “anyone promising to lower rates is misguided.”
EPIRA allowed for the privatization of energy generation which for now is dependent on the world market price of coal and that the sale of geothermal plants in Leyte and Palinpinon were claimed to be overpriced by about P10 Billion to Green Core Energy Development Corp., thus all of these are now passed on to consumers.
While Ceneco General Manager Sulpicio Lagarde, Jr. explained in detail reasons for present condition of power cost, Lapore expressed Ceneco’s pricing mixed as dependent on market forces therefore “no one is in the position to claim low or high electricity cost.”
In a related forum, last December 6, Panay Energy Development Corporation President Art Aguilar who was guest speaker at the yearend gathering of Metro Bacolod Chamber of Commerce and Industry (MBCCI) likewise clarified that the “controversial, highly speculative” contract with Ceneco is backed by the integrity of the Metrobank Group of Companies, transparent, open to scrutiny of media, entity or any individual.
Most of all, that so-called controversial PEDC contract with Ceneco was submitted to the Energy Regulatory Commission (ERC) for proper disposition.
Aguilar said, the fact that Ceneco owes PEDC some P200 million worth of coal power and presently negotiating with PEDC for “fair price” scheme, “Do I need to go to law school just to prove the validity of such contract?”
Aguilar explained that PEDC was there when Ceneco consumers needed them otherwise last 2011 summer could have been most terrible, troubling consumers of six to seven hour daily brown out, conking out appliances therefore accruing highest cost to consumers and opportunity lost for the business sector.
Lagarde recalled that this was at the time (December to April 2011) when Kepco was unable to supply all the power needs of Ceneco, time period prior to full commercial operation of Kepco’s power plants in Cebu thus the need to fill power deficit from PEDC and which Lagarde in an earlier press conference declared he would rather go to court defending the mandate of Ceneco under the law and consumers’ welfare of continuous supply of electricity.
Said contract discussed by Aguilar before the business executives gathered by MBCI was signed under the Presidency of Engr. Edward Gasambelo who was also present during the MBCCI gathering but refused comment except to expressed confidence that when he left Ceneco, reforms were already institutionalized and there would be no way to destroy it.
Among these reforms were personnel training at the University of the Philippines, department heads are now tenured and Ceneco continues to be open and transparent to media and other entity.
Aguilar ended query to said controversial contract, saying, “Now, KEPCO has a lower rate than PEDC therefore naturally, Ceneco is bound to purchase the lower rate. Fine, did you hear any statement for PEDC opposing such purchase? This is a market system and anyone is free to purchase or not.”
Ceneco, however, is now protesting the P0.50 increase of KEPCO together with other electric cooperatives in Negros Occidental.*
EPIRA allowed for the privatization of energy generation which for now is dependent on the world market price of coal and that the sale of geothermal plants in Leyte and Palinpinon were claimed to be overpriced by about P10 Billion to Green Core Energy Development Corp., thus all of these are now passed on to consumers.
While Ceneco General Manager Sulpicio Lagarde, Jr. explained in detail reasons for present condition of power cost, Lapore expressed Ceneco’s pricing mixed as dependent on market forces therefore “no one is in the position to claim low or high electricity cost.”
In a related forum, last December 6, Panay Energy Development Corporation President Art Aguilar who was guest speaker at the yearend gathering of Metro Bacolod Chamber of Commerce and Industry (MBCCI) likewise clarified that the “controversial, highly speculative” contract with Ceneco is backed by the integrity of the Metrobank Group of Companies, transparent, open to scrutiny of media, entity or any individual.
Most of all, that so-called controversial PEDC contract with Ceneco was submitted to the Energy Regulatory Commission (ERC) for proper disposition.
Aguilar said, the fact that Ceneco owes PEDC some P200 million worth of coal power and presently negotiating with PEDC for “fair price” scheme, “Do I need to go to law school just to prove the validity of such contract?”
Aguilar explained that PEDC was there when Ceneco consumers needed them otherwise last 2011 summer could have been most terrible, troubling consumers of six to seven hour daily brown out, conking out appliances therefore accruing highest cost to consumers and opportunity lost for the business sector.
Lagarde recalled that this was at the time (December to April 2011) when Kepco was unable to supply all the power needs of Ceneco, time period prior to full commercial operation of Kepco’s power plants in Cebu thus the need to fill power deficit from PEDC and which Lagarde in an earlier press conference declared he would rather go to court defending the mandate of Ceneco under the law and consumers’ welfare of continuous supply of electricity.
Said contract discussed by Aguilar before the business executives gathered by MBCI was signed under the Presidency of Engr. Edward Gasambelo who was also present during the MBCCI gathering but refused comment except to expressed confidence that when he left Ceneco, reforms were already institutionalized and there would be no way to destroy it.
Among these reforms were personnel training at the University of the Philippines, department heads are now tenured and Ceneco continues to be open and transparent to media and other entity.
Aguilar ended query to said controversial contract, saying, “Now, KEPCO has a lower rate than PEDC therefore naturally, Ceneco is bound to purchase the lower rate. Fine, did you hear any statement for PEDC opposing such purchase? This is a market system and anyone is free to purchase or not.”
Ceneco, however, is now protesting the P0.50 increase of KEPCO together with other electric cooperatives in Negros Occidental.*
