Power firm bares P167-M old account of City Hall

Sunstar Bacolod

By Teresa Ellera-Dulla and Carla N. Canet

THE Central Negros Electric Cooperative (Ceneco) president's disclosure of the P167 million old account of City Hall is a diversionary tactic of a nuclear reactor leak-like issue against the firm's officials, Bacolod City Mayor Evelio Leonardia said.

Leonardia said the old account was an issue way back in 2002. It was incorporated in the P33-million Compromise Agreement entered into by the City Government and Ceneco.

An offsetting was considered on the old accounts of City Hall on electric bills with the franchise tax of the same amount pegged at P167 million, which is being collected by the City Government against Ceneco, he said.

Leonardia added that current City Hall accounts were already settled with Ceneco and that, of the P33 million under the compromise agreement, about P17 million were already paid by the city.

However, the city did not proceed with the payment because under the compromise agreement, 50 percent of the P33 million was supposed to go to projects identified by the City Government.

“The city has already paid half of the amount, but Ceneco has failed to comply with the agreement,” he said.

Included in the projects identified by the city Government are street lights from the area of Police Station 6 to Gonzaga Street up to the New Government Center and Doña Juliana Subdivision.

Leonardia, meanwhile, said Ceneco president Edward Gasambelo has to explain to the consumers why the company entered into a power supply contract with another firm with a power cost that is higher by P5 per kilowatt-hour.

He said he will leave it to the City Council to disclose the full details of the controversial contract. The Council is set to hold an inquiry about the alleged anomalous contract.

Disconnect City Hall?

Gasambelo, in a press conference on Sunday, said Ceneco's notices of disconnection were sent to City Hall.

“When I decide, I will and no one can stop me. But I will be very responsible when I decide on the matter,” Gasambelo said when asked if he will order the disconnection of the government center’s power supply in case the city fails to pay.

But, Leonardia in response said, “I find it awkward. Let him make our day. He should answer the issues against them. He may be in panic.”

City Hall’s old account with Ceneco according to Gasambelo was P186 million. He said the Department of Finance already came out with an opinion that electric cooperatives like Ceneco should not be charged by local government units with franchise tax for the generation, transmission and distribution of power.

He added that Ceneco religiously paid to the City Government the tax for the distribution of electricity.

Gasambelo stated they would not want Ceneco consumers to get the impression that the electric coop readily disconnects the power supply of ordinary consumers but yet it could not collect and impose such action on big consumers like City Hall.

Published in the Sun.Star Bacolod newspaper on April 04, 2011.