Ceneco official requested to explain entering into a P1.4B loan

Posted by watchmen
September 3, 2018
Posted in HEADLINE

City councilor: Repayment may be passed on to consumers

By Jerome S. Galunan, Jr.

 

The Bacolod City Sangguniang Panlungsod (SP) recently approved a resolution calling for Central Negros Electric Cooperative Inc. (Ceneco) General Manager Sulpicio Lagarde, Jr. to appear before the legislative body and explain the utility cooperative borrowing a P1.4 billion loan.

In addition, the Energy Regulatory Commission (ERC) conducted a hearing last month regarding the said loan.

While Ceneco earlier explained the loan was intended for their multi-year capital expenditure program, Bacolod City Councilor Wilson Gamboa, Jr., who authored the resolution, explained, under ERC requirements, Ceneco is required to present details of the loan to the SP.

The resolution also cited the Electric Power Industry Reform Act, which notes repayment for such a loan can potentially be passed on to consumers, which would add a financial burden onto their members.

Gamboa also reminded Lagarde to submit all board resolution and management proposals regarding power contracts to the SP./JSG, WDJ

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