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Bacolod City, Philippines Monday, December 4, 2017
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‘P414.6M not mandatory'

It is not mandatory for Central Negros Electric Cooperative to collect from its consumers the P414.6 million in under-recovery,Vicente Petierrelll, legal counsel of the Social Action Center, said.

Petierre said the collection of the P414.6 million under-recovery is not mandatory since no power supplier is prejudiced. This is in addition to the P232 million case involving the supplemental agreement between Ceneco and Kepco-Salcon Power Corporation, he said.

During the term of Mayor Evelio Leonardia, they opposed this additional burden to be passed on to the consumers, Petierre said.

The Energy Regulatory Commission will conduct a hearing at 10 a.m. today at the Ceneco main office in Bacolod City on the electric application of the cooperativefor the approval of over/under recoveries in the implementation of automatic cost adjustments and true-up mechanisms.

Ceneco filed an application for approval of its under-recovery amounting to P414 million on March 26, 2012.

During an initial hearing on the under-recovery program application of Ceneco on June 2, 2012, it was revealed that the electric cooperative had filed a motion for provisional authority before ERC on April 18, 2012, to recover from the consumers the under-recoveries and enable it (Ceneco) to pay its accumulating obligation to KSPC.

Petierre said they are questioning this additional P414.6 millionin under-recovery because no power supplierhas sent a demand letter requiringCenecoto pay its accumulating obligation.

They will file a manifestation during the hearing today, he said.

During the hearing at the ERCin Manila,Cenecowas mandated to file the case to determine if there was over/under recovery. But the ERC hearing officer at that time said it is not mandatory for Ceneco to collect if there was under-recovery, Petierre said.

In 2011, the under-recovery totaled P296 million out of P414 million and the systems loss of Ceneco increased, he said.

Petierre said Ceneco filed the case asking for provisional authority claiming that they have to pay supplierKSPC their accumulating obligation. The contract of KSPC started in 2009 and the computation started in 2004.

He said Ceneco also claimed that the classification of the electric cooperative in 2011 dropped from A + to A. But this should be attributed to mismanagement or inefficiency.

Petierre said ERC provided a formula or template under ERC Resolution No. 16 to determine under recovery.

Out of the P414.6 million, the systems loss of Ceneco totaled P75 million, he said.

However, they do not know how to come up with the technical and non-technical losses, yet they know how to come up with the P75 million systems loss, he added.*CGS





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