Group to block Ceneco franchise renewal if it fails to have JVA

Posted by watchmen
June 8, 2023
Posted in HEADLINE
Abang Lingkod Party-list Representative Stephen Paduano would not allow consumers of Central Negros Electric Cooperative to suffer for another 25 years due to the distribution utility’s inefficient service and unreliable power supply, he said during Primelectric Holdings Inc.’s presentation in relation to the joint venture agreement on June 3, 2023.
Abang Lingkod Party-list Representative Stephen Paduano would not allow consumers of Central Negros Electric Cooperative to suffer for another 25 years due to the distribution utility’s inefficient service and unreliable power supply, he said during Primelectric Holdings Inc.’s presentation in relation to the joint venture agreement on June 3, 2023.

By Mae Singuay

Abang Lingkod party-list representative Stephen Paduano disclosed that he will oppose the franchise renewal application of Central Negros Electric Cooperative (Ceneco) if it fails to have a joint venture agreement (JVA) with a financially-capable private distribution utility. 

Paduano said Ceneco is already bleeding and has no financial capability to improve its services in the years to come before they apply for renewal of its franchise.

He added that he would not allow consumers of Ceneco to continuously suffer for another 25 years of inefficient service and unreliable power supply. 

“Manug-expire na ang franchise sang Ceneco sa 2030. Dapat ang processing sa renewal sang franchise sa Congress should start 2025. Prangkahon ta kamo, naghambal na ko, I will oppose it,” Paduano stressed.

The JVA signing between Ceneco and the Primelectric Holdings Inc./Negros Electric and Power Corporation was held in Bacolod City on June 3.

The “yes” vote of the consumers will ratify the agreement through a plebiscite on June 24 and 25, and July 1 and 2.

Ceneco has around 214,000 consumer-members in its franchise areas in the cities of Bacolod, Silay, Talisay, and Bago; and the towns of Murcia and Don Salvador Benedicto in Negros Occidental.

“Indi ko pwede tunlon na. Gusto kita magpadayon nga mag-suffer?” Paduano asked.

“For the past several years naman and even decade nga napamatud-an naman na. Hopeless ang situation sang Ceneco subong. Indi sila maka-develop because ang application nila for capex [capital expenditure] sa Energy Regulatory Commission, gina-turn down,” he said.

Hamakon mo, diin ka makakita distribution utility nga gina-subsidized P20 million a month? How can you rehabilitate, how can you develop? How can you implement capex kay naga-subsidize gani P20 million?” he further asked.

But Paduano said if consumers support ratifying the signed JVA, he will even sponsor it to Congress.

“Whenever this JVA will push through the majority votes of all Ceneco consumer-members, ako ya, kun wala sang matindog, tindugan ko ‘ni to sponsor the renewal of such franchise,” he said.

Paduano also lauded the performance of MORE Electric and Power Corporation (MORE Power) in Iloilo City, the sister company of Primelectric.

“In the past three years of operation, ginapakita sang MORE ang ila track record. Look at what happened in Iloilo. Nagnubo ang rate sa kuryente, maayo serbisyo, sige sila expand. Ang mga dapat nga pang-rehabilitate nga poles kag mga linya, gin-areglo nila. Subong ga-refund pa sila ho,” Paduano said.

“It’s not all about MORE, it’s not about Ceneco. It’s all about sa mga konsumidor sa Bacolod City nga matagaan sang maayo nga serbisyo. So, it’s now or never,” he told village chiefs in Ceneco’s franchise areas.

The party-list representative said further he would personally campaign in every barangay to convince consumers to vote “yes” in the plebiscite.

Meanwhile, former Ceneco president Roy Cordova said the Ceneco-Primelectric JVA is one of the best options for the distribution utility to meet the present demand and challenges brought about by provisions of the power industry mandate, especially for electric cooperatives (ECs) in the country.

Cordova added that Ceneco was incorporated and given the franchise 48 years ago and, in a few years, this will face uncertainty because Section 27 of Republic Act 9136 states that the EC’s franchise renewal is vested with Congress. 

“With its partnership, it will become a robust distribution utility and be capable of providing satisfactory service to the franchise or coverage area of Ceneco,” Cordova said.

Hence, Ceneco will exist for another 50 years or more because it will be able to meet the requirements for the grant of a Congressional franchise,” he added./MS, WDJ

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