Advocacy group opposes ERC decision allowing P232M to be collected from consumers

Posted by watchmen
October 10, 2017

By Dominique Gabriel G. Bañaga

Power Watch Negros (PWN) yesterday expressed their opposition to the Energy Regulatory Commission (ERC) decision allowing the Korean Electric Power Corporation-Salcon Power Corporation (Kepco-SPC) and the Central Negros Electric Cooperative, Inc. (Ceneco) to collect P232 million from consumers, considered “unnominated contract quantities.”
PWN Secretary-General Wennie Sancho called the move an “injustice” on Ceneco consumers, who many may not be aware of the power sales contract, sometimes referred to as a power purchase agreement, which is when two parties determine the commercial terms of an arrangement to generate and purchase electricity.
“This is incompetent contracting,” he said. “Why penalize the consumers for the inefficiency of the Ceneco board?”
According to Sancho, consumers will be paying an average P2.8 million per month over the next 72 months.
“This is a form of economic strangulation,” the group leader added. “Ceneco President Roy Cordova should explain this matter to the consumers for transparency.”
Earlier this year, PWN and nine other groups held a protest rally in front of Ceneco main office over allegations of “overcontracting.”
At the time, Sancho noted, if the ERC rules in favor of Kepco-SPC, the P232 million payment will surely be passed on to consumers.
He explained, the deal is grossly disadvantageous as power consumers are left to pay for power supply they did not use./WDJ

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