Energy law does not omit P0.36 subsidy

Sunstar Bacolod

THE Electric Power Industry Reform Act of 2001 (Epira) law, Section 72 does not omit the P0.36 centavo per kilowatt hour subsidy, said Bacolod City Administrator Dr. Rogelio Balo.

Balo said Central Negros Electric Cooperative (Ceneco) general manager Sulpicio Lagarde Jr. told him that the power cooperative's problem now is the ending of contract with the Green Core.

Since they could not avail of the subsidy by December 26, they will go to Unified Leyte and get 36 megawatts (MW).

But in Bacolod, the power demand is 118 MW. They never clarified during the span of December 26 up to March 11 when they start with Kepco Salcon, where will they get the remaining balance of 82 MW, Balo said.

“I clarified with them that if they source out power supply from a Napocor-owned plant, which Unified Leyte is in the same category, they cannot say that they cannot avail of 36 MW. If they will source out 36 MW from Unified Leyte, they can avail of MRR (mandatory rate reduction) and prompt payment discount. He proposed that the 36 MW be provided to residential consumers and the remaining power to business and commercial establishments,” he said.

He added, “If they start with Kepco Salcon, we should brace ourselves because it has higher rates than Napocor. I am just wondering why they did not extend their contract with Green Core.”

If their source of power is Napocor-owned, they have no legal basis to increase their rates. If they will source the remaining 82 MW from other power suppliers, their problem is how to compute it.

Balo said they will also look into the increase in rates if it is valid. (Carla N. Canet)

Published in the Sun.Star Bacolod newspaper on December 15, 2010.