The House Committee on Rules has referred the resolution of Rep. Jose Carlos Lacson (Neg. Occ., 3 rd district) seeking an inquiry into alleged anomalies in the approval of the power sales contract between Central Negros Electric Cooperative and Korean Electric Power Corp.-Salcon Power Corp to the Committee on Good Government.

Lacson yesterday said he has asked House Committee on Good Government chairman Rep. Pedro Romulado (Camiguin) to hold early hearings on the matter in Bacolod City .

The power sales contract was inked by officials of KSPC based in Naga, Cebu and CENECO in Bacolod City on July 16, 2007 .

Under the contract, KSPC will supply CENECO with power from coal-fired power plants that have yet to be built.

The power sales contract inked by KSPC and CENECO is contrary to government policy to encourage the generation of renewable energy because the agreement provides that the power to be supplied to CENECO consumers will come from coal energy, Lacson said.

KSPC's power rate is P4.30 per kilowatt hour, while the Philippine National Oil Corp-Energy Development Corp. offer is P4.50 kWH for power from its Northern Negros Geothermal Plant in Bago-Murcia in Negros Occidental, Lacson said.

However, Lacson pointed out that the P4.50 kWH from PNOC-EDC has a zero Value Added Tax rate as the energy source is renewable, while coal, being non-renewable energy, is subject to 12 percent VAT, so KSPC's base price is actually P4.8160 kWh.

Remedial measures must be taken by the legislature to prevent alleged malpractices and anomalies in the approval of the power sales contract, he said.

Meanwhile, Lacson said the House is set to approve the cheaper medicines bill on second reading this week.*CPG

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