Electric coop exec calls for probe on power generators

By Dolly Yasa

BACOLOD City – The president of the Central Negros Electric Cooperative (Ceneco) called on all stakeholders and local government units to support the calls of electric cooperatives for an investigation or inquiry on the power generators and fuel suppliers amid the continuing increase of electricity rates.

Ceneco president Jojit Yap on Thursday said they want the Energy Regulatory Commission (ERC), the Congress, and even the Office of the President to conduct the probe.

While they are saddened by the continuing increase in electric rates, Yap said “Ceneco and all other electric coops (ECs) are just the chopping board of the exploitation of the national and global situation of the fuel market.

“We are at a loss and we have no control or influence on this matter, we cannot even intervene,” she added.

“We reiterate our call for the LGUs and other stakeholders to support the efforts of the electric coops to lobby with ERC, as a regulating body for electricity rates and also for Congress, Senate, and even Malacañang to conduct an investigation or inquiry on the power generators and fuel suppliers why they are charging the escalation cost to the electric coops which is also being passed on the consumers.”

Yap said ECs are not privy to computing the electric charges consumption, which only the ERC knows.

“We feel that big business groups and fuel suppliers seem to be exploiting the Russia-Ukraine war to make more profits at the expense of the ordinary consumers.”

She added that if there is an upcoming congressional/ Senate inquiry, power generators and fuel suppliers should also be made to attend to clarify issues hurled against them.

Earlier, Bacolod Mayor Alfredo “Albee” Benitez asked the ERC to look into two different contract prices charged for the purchase of power by Central Negros Electric Cooperative (CENECO) from a power producer.

Benitez said it is also worth looking into the possible abuse of the power market considering the big disparity in the rates of generators.

Under the 350-megawatt (MW), 10-year Power Supply Agreement (PSA), Palm Concepcion Power Corp. (PCPC) charged Ceneco  P14.6 per kilowatt-hour (kWh) while under a 20MW, 1-year contract, it charged P10.27 per kWh.

This warrants a review by the ERC of the power supply agreements between CENECO with PCPC, Benitez said.

In his letter to Mayor Benitez, Atty. Vic Alvaro, Ceneco acting general manager, said the cooperative entered into an emergency power agreement with PCPC in May 2021 in addition to its existing 10-year bilateral contract dating July 24, 2014.

These two contracts signed under different terms and conditions are the very reason why there are two different generation rates coming from the same generator, Alvaro said.

“The 350-MW PSA has higher rates because it includes the recovery of the cost of construction and other capital outlay of a new power plant, it also considered the long-term assurance of maintenance and operation of the power plant and supply of coal fuel,” Alvaro said in his letter to Benitez.

In comparison, the rate structure of the 20-MW emergency PSA was formulated based on an existing power plant, thus, the minimal provision for capital recovery, Alvaro pointed out.

He added that the contract is for a short-term engagement which has flexible terms resulting in lower operations and management fees.