Ceneco seeks consumers’ intervention on P0.30 MRR
BACOLOD CITY — Central Negros Electric Cooperative, Inc. (Ceneco) appealed for the intervention of solons, local government officials and the Social Action Group (SAC) in Negros Occidental to compel the Power Sector Assets and Liabilities Management (PSALM) to quicken the Mandatory Rate Reduction (MRR) reimbursement amounting to P7.2 million for the billing month of November 2009 as provided under Section 72 of the Epira Law of 2001 which mandates a 0.30 centavos per kilowatthour reduction for residential consumers.
Recipients of the said appeal were Cong. Julio A. Ledesma IV (1st District), Cong. Jose Carlos V, Lacson (3rd District), Cong. Jeffrey P. Ferrer (4th District) and Cong. Monico O. Puentevella (Bacolod City).
The support of the Mayors of the different cities and municipalities under the coverage area of Ceneco was also sought since their constituents are the beneficiaries of the Mandated Rate Reduction (MRR).
Letters were sent to Bacolod City Mayor Evelio R. Leonardia, Silay City Mayor Jose L. Montelibano, Bago City Mayor Ramon D. Torres, Talisay City Mayor Dr. Eric M. Saratan, Municipality of Murcia Mayor Esteban H. Coscolluella, Municipality of Don Savador Benedicto Mayor Laurence Marxlen J. De la Cruz and Social Action Center Director Fr. Aniceto A. Buenafe, Jr.
In the past, the National Power Corporation (NPC) automatically deducts the MRR from its power bills to Ceneco and other Distribution Utilities (DUs), subject to the reimbursement of PSALM. When Palinpinon Geothermal Power Plant in Negros Oriental was privatized, Green Core Geothermal Inc. (GCGI) became the successor generation company and, subsequently, the Transition Supply Contract (TSC) of CENECO with NPC which will expire on December 26, 2010 was ceded to GCGI on October 26, 2009.
In the November 2009 power bill of Ceneco, GCGI loaded the MRR amounting to P7.2 million, instead of advancing the same and then seek reimbursement from PSALM later. Greatly considering the welfare of its electricity consumers, Ceneco advanced the MRR because GCGI opted to avoid PSALM. Ceneco protested the move of GCGI but to no avail. For the December 2009 power bill, GCGI again loaded the MRR amounting to P6.3 million.
An appeal was already made by Ceneco to PSALM, through its President, Mr. Jose C. Ibazeta, for the early reimbursement of the November 2009 MRR advances amounting to P7.2 million before the December 2009 power bill falls due because Ceneco could no longer afford to advance another P6.3 million for the December MRR since doing so would total the advances to P13.5 million already. Despite the appeal, no favorable response from PSALM was received. On January 8, 2010, PSALM responded by providing Ceneco with a long list of never-before discussed requirements that could not possibly be met before the December 2009 power bill falls due on January 15, 2010.
Ceneco General Manager Sulpicio C. Lagarde, Jr., in his letter to PSALM President Jose C. Ibazeta, appealed for his understanding of Ceneco’s inability to advance the MRR for the second time, adding that Ceneco will be left with no choice but to pass-on the MRR directly to the consumers to stop the unnecessary and non-programmed advances to the detriment of the electric cooperative’s planned projects and personnel benefits for 2010.
