Resolution calls for ERC to ‘examine’ Ceneco contracts

Posted by watchmen
August 20, 2018
Posted in HEADLINE

Devanadera personally requested to oversee the matter

 

By Jerome S. Galunan, Jr.

 

The Bacolod City Sangguniang Panlungsod (SP) recently passed a resolution calling for the Energy Regulatory Commission (ERC) to “examine and look into” contracts entered into by the Central Negros Electric Cooperative, Inc. (Ceneco).

“ERC has the technical capability to determine the ‘over-contracting’ of power supply on the power supply agreements,” explained Bacolod City Councilor Wilson Gamboa, Jr., who authored the resolution.

In addition, ERC Chairperson Agnes Devanadera was personally requested to oversee the matter.

According to the resolution, the SP must be apprised of existing contracts, or “agreements,” as power agreements between electricity cooperatives and power suppliers may include a “take-or-pay” provision, which refers to a supply being paid for regardless if it was received for distribution by the cooperative.

The policy added, “[Ceneco] should be responsible and conscionable to ensure that they should only contract power supply that would address their power requirement so as not to burden the energy consuming public with an unreasonable high cost of power.”

Gamboa said the resolution was in response to complaints and used his personal electricity bill to illustrate Ceneco assessing an 80¢ increase last May, calling it an “overburden to consumers.”/JSG, WDJ

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