More on Ceneco-Kepco deal

I am happy with the very favorable feedback on my item Tuesday about the need to make the Ceneco-Kepco deal transparent and open to Ceneco consumers who will bear the burden of paying Kepco.

The reactions came from friends who either called or texted me. I want to acknowledge two foreigner friends who were happy with my revelation of the security deposit of some P189 million which was not revealed before. The two foreigner friends are British Neil Honeyman and a Belgian, Stanley de Baere.

Another texter asked that Bacolod Bishop Vicente Navarra rethink the Diocese position on the entry of PNOC-EDC on buffer zone of the Mt. Canla-on National Park.

According to my informant PNOC-EDC Vice President Agnes de Jesus had presented PNOC-EDC plans to enter the buffer zone twice and there were no objections. Now the Diocese is objecting.

In the face of Jaro Archbishop Angel Lagdameo's request for PNOC to supply Iloilo with geothermal power from Negros, it will be unfair that geothermal produced in our province is used by a nearby province and where else will we source our power but the coal-fired power in Cebu which, as I have argued, will be more costly.

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Up to my writing yesterday morning, no one had yet disputed my column which side I promised to air. I want to reiterate that I am not siding with any supplier except the interest of Ceneco consumers, being one of them, that we get a reliable much cheaper cost of electricity.

If Ceneco can give you a copy of the contract, you will find the provision on security deposit at Article 7.1 to be paid in cash 30 days before the commercial operation, to be increased every year thereafter, “in consideration of Contract Quantity delivered and of Transmission Costs, market fees and Ancillary Service charges incurred…”

That is why we insist on the public hearing and/or the Congressional inquiry. We have the right to know and it is our right to decide to enter into that contract, being the right party.

This is a cooperative. Decisions must be finally made by the members, not just the officials.

We have learned our lessons. Many power consumers have suffered tremendously because the consumers just closed their eyes.

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But, I also want to correct what I wrote that Ceneco consumers will be made to pay for electricity although not consumed. This is another reason why this should be discussed publicly so that we will know how many megawatts do we really need.

This has been the trap that many independent power producers in 1992 led the consumers into. This was how electricity rates became unbearable. Many of the IPPs did not deliver the contracted quantity but consumers paid them just the same.

You read Ceneco-Kepco Contract, Article 6.2.f. It's too long a provision to cite but, in short, it says that if Kepco-Salcon cannot deliver the contracted quantity, Ceneco will still pay the contracted quantity but 75 percent only. It is 75 percent only but we will still pay.

That discount of 25 percent is what our Spanish-speaking oldies called “consuelo de bobo”. The consolation of fools!

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The contracted quantity is 470.4 million kilowatt hours a year. Or 67.12 megawatts. Can we consume all these? Is there an exhaustive study of our consumption growth? If we consume only 60 percent or even 80 percent, we will be forced to pay the whole amount.

If it delivers less than what we consume, we will pay still but with a 25 percent discount. This will be a double whammy! We suffer the brownouts and yet we still pay for our suffering.

That is why I insist, let there be a hearing or Congressional inquiry.

And I appeal to Ceneco officials, don't be afraid to hold a hearing even if it may reveal the mistakes you may have made in signing the contract. The public always has a soft heart for penitents. No one is perfect.

If there's nothing wrong with it, why be afraid to bring it out in the open?

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Exchanging knowledge and experience is good for our local public officials. Nine officials of the town of Igbaras in southern Iloilo are here to learn how Bacolod , Silay, Bago, and Murcia have achieved progress, with their development projects.

Igbaras is the interior town in southern Iloilo where I was born with its many potentials waiting to be tapped. The officials who are here are led by Dr. James Esmeralda, municipal mayor, Vice-Mayor Edmund Esporas, and the following councilors: Nilo Graza, Fatima Peñol, Ma. Lourdes Dalmacio, Panfilo Espiña, Francisco Elbanbuena, ABC President Jorge Eiman, and treasurer Cynthia Cabañero.

They were briefed last night by Mayor Sonny Coscolluela, this morning they will be in Silay to hear Mayor Oti Montelibano, in the afternoon to visit the Government Center and be briefed on how Bacolod increased its budget by 32 percent and now a billion pesos, and tomorrow to be with Bago Mayor Monet Torres.

They believe we can only learn from the experience of others.*

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