‘No overpricing in contract extension’ 

By Dolly Yasa

BACOLOD City – Central Negros Electric Cooperative (CENECO) General Manager Atty. Dan Pondevilla refuted claims by Power Watch Negros that the contract extension for the 20-megawatt power supply from KEPCO SALCON Power Corporation was overpriced.

Pondevilla said the P5.42 per kilowatt hour is the price for the one-year contract extension with KEPCO after their previous 40-MW deal expired last May 25.

Pondevilla also said the rate is approved by the Energy Regulatory Commission (ERC) based on the previous contract.

He explained that the P3.29 per kilowatt hour stated by Power Watch Negros lead convenor Wennie Sancho is the lowest bid that was also given by KEPCON SALCON during the Competitive Selection Process last month.

However, the contract was not awarded as they are also considering another offer by a renewable power company which is priced at P3.31 per kilowatt hour.

Pondevilla pointed out that even though it is two centavos more expensive, they have expressed interest with the offer especially since renewable energy is more sought nowadays.

He added they have already asked the Department of Energy for its opinion on the matter.

Pondevilla further stated that they must choose and award the contract to the right energy source.

Earlier, Sancho sent a letter to Negros Occidental 3rd District Rep. Francisco “Kiko” Benitez seeking a congressional inquiry over the alleged overpricing.

Sancho said the overpriced contract extension would leave a P4- to 5-million monthly loss for CENECO’s power consumers, which further amounts to P300 million in one year.