Ceneco-Kepco
contract revisited

While writing this piece yesterday, I got a call informing that on Saturday afternoon seven officials of PNOC-EDC were flown to Iloilo on the request of Jaro Archbishop Angel Lagdameo. They met with civil society in Iloilo on the request of the Archbishop who is also CBCP President. Lagdameo asked that PNOC-EDC supply Iloilo with geothermal power from Negros .

What? We in Negros who have a geothermal power, appear to prefer coal-fired to geothermal power? We should know our priority. We are just happy that PNOC-EDC officials told them, they are committed to supply Negros first, if we want them.

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We'd like to thank our readers. When we wrote yesterday for some facts on the P190 million required by the contract of Ceneco with Kepco-Salcon as a security deposit, we got answers from e-mail addressed to DAILY STAR.

This was kept by Ceneco before. We were told in the contract Ceneco must pay a security deposit of P188,787,200. This is rounded off at P189 million. We ask, will this not affect the maintenance of facilities of the cash-strapped Ceneco? We are already complaining of frequent power outages.

That is why we renew the call on Energy Regulations Commission Chairman Rodolfo Albano to resume the public hearing here so that the consumers will know. There was no cross examination of the witnesses and the hearing was suspended.

And we call on Rep. Jose Carlos “Kako” Lacson to have as early as we can the Congressional inquiry. And we make our decision earlier on getting contract with geothermal before Iloilo , through Archbishop Lagdameo, takes it away from us.

* * *

A Ceneco consumer texted me, ERC Chairman Albano is retiring. What's wrong with that? I asked. Nothing, he said, except that we must be watchful over retiring government executives. Look, he said, what happened to retiring Comelec Chairman Benjamin Abalos who brokered the ZTE deal

I said, I have confidence in Chairman Albano whose name has never been dragged into any shady deal. Not like Abalos. Long before the ZTE deal, he was already controversial. Albano will never want to leave public service with a bad name.

I want to state it clear here. My only interest is that Ceneco consumers get a better deal, reliable power at a cheaper cost, whoever the supplier is.

If there is something you may not agree with what I write here, kindly write me and I will be happy to give your side.

Negros sits atop a geothermal area. And Congress is set to enact a law promoting renewable energy which is cheaper and more environment friendly. If there is an open public hearing or a Congressional investigation, we will know the real score.

Imagine what a big disaster that will be if Iloilo gets geothermal power from Negros and it's cheaper that we who get coal-produced energy from Cebu which, in the end, will become costlier? Blame our officials who just folded their arms while these were being discussed.

Many of us who had the privilege to be Ceneco president were courted by coal plant investors. But with many, consistent, and hard-hitting oppositors, they failed.

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We also inquired if Kepco-Salcon has a contract with a Cebu power company. We were told it has none, because in Cebu they prefer to put up their own coal-fired power plants. The proposed plant in Naga, Cebu is intended to supply the three electric cooperatives in Negros , Noceco, Vresco and Ceneco. I don't know with Noceco and Vresco. But, oppositors at Ceneco will fight to the last drop.

What is a Kepco-Salcon power corporation? I was told, it has an authorized capital stock of P18,431,648, fully subscribed and paid up. And it contracts to supply Ceneco with 470.4 million kilowatt hours a year or 67.12 megawatts, 25 percent of that or 16.78 megawatts will be sourced from the National Power Corporation.

We don't want to underestimate how Kepco-Salcon with its P18 million capital can put up power plants to supply the needed energy. Could be the reason why the security deposit of P189 million?

But what I got is that Kepco-Salcon will put up a 200-megawatt power plant at a cost of $416.479 million. How can this be done by an P18-million capital corporation? Ah, my informant told me, “they will use the contract as a collateral.”

We will lose the geothermal power which is cheaper and yet, to use a local saying, “We will be fried in our own lard,” if we use coal.

* * *

That is why I insist, like Ms. Romana de los Reyes and Ms. Espie Resus, Secretary General of the Freedom from Debt Coalition that all these should be transparent.

I have pointed it out again and again that coal will turn out to be much more costly with the fast escalating cost of coal in the world market which with the price increase and the increase of foreign exchange rate to be charged to the consumers plus the value added tax of 12 percent.

And transparency is needed to find out how much do we really need so that we will not contract for a bigger amount and then pay for the electricity we don't use like what people in Iloilo City are suffering whose rate is nearly double ours.

Shall we fall into the trap others had fallen into? Let us open our eyes before we get into this contract with Kepco. Let there be transparency.

I repeat, I am open to arguments from the other side, if they can defend their stand. Let the issue be discussed publicly.*

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