Group to seek congressional probe on Ceneco-Kepco contract extension

By Dolly Yasa

BACOLOD City – Power Watch Negros secretary-general Wennie Sancho said he is seeking a congressional inquiry on the one-year extension of the current agreement between Kepco-Salcon Power Corporation and the Central Negros Electric Cooperative (Ceneco).

Sancho said that instead of extending the agreement with Kepco on the 40-megawatt base load supply of Ceneco, the latter should have acted on the recommendations of the Third Party Bids and Awards Committee.

“The Ceneco-Board of Directors failed to act on the recommendation of the Third Party Bids and Awards Committee with reference to the meeting last April 12, 2021 wherein the lowest calculated bid was from Kepco that was P3.2929 per kWh,” he said.

Jay Erwin Balabag, a member of the technical working group (TWG) reiterated that the bidder with the lowest calculated bid shall be notified through email regarding the post qualification and to submit post qualification requirements three calendar days after the receipt of the notice.

But the board failed to act on this recommendation by the TPBAC, Sancho said.

Instead, they decided to extend the 40MW existing power deal with Kepco for one year only for 20MW but under the same terms and conditions of the previous 40MW deal.

Sancho said that according to Engr. Norman Pollentes at the present Kepco price of P5.58 per kilowatt-hour (kWh) inclusive of valued added tax VAT in May, the “short-term extension” cost would be about P977.6 million.

“The price difference between P5.58 minus P3.29 is P2.29, multiplied by 14,400,000, which is the equivalent of 20MW, would be P32,976,0 000 per month or P395,712,000 a year. CENECO could have spared us from paying millions if they had exercised prudence by choosing P3.29 per kWh. The economic ramifications cannot be understated,” he further said.

Ceneco acting general manager Danny Pondevilla earlier clarified that they extended the current contract for the delivery of the base load power supply for a year, but only for 20MW.

But Sancho said it’s still detrimental to the consumers since the extension of contract would mean that Ceneco will pay P977.6 million in a year.

Sancho further said that Power Watch sought the help of the Department of Energy, through Secretary Alfonso Cusi last week before formal complaints will be filed.