Wednesday, July 6, 2011

Probe into Ceneco ‘violations’ pushes through


Wednesday, July 6, 2011
THE Bacolod City Council approved a resolution urgently requesting the conduct of investigation on alleged violations of the Central Negros Electric Cooperative (Ceneco) officials over electricity procurement.
Councilor Caesar Distrito authored Resolution 577, Series of 2011, requesting the Energy Regulatory Commission (ERC) and the National Electrification Administration (NEA) to look into the Ceneco officials involved in the procurement of electricity from the Panay Energy Development Corporation (PEDC) and had almost paid more than P200,000,000 despite the absence of approval from the ERC and if proven correct, to impose administrative fines and penalties be considered as their personal liabilities.
The resolution entitled, “A resolution inquiring from the Central Negros Electric Cooperative if they are already utilizing the electricity from Panay Energy Development Corp. despite the absence of the contract having been reviewed and approved by the Energy Regulatory Commission, and if the payment had been made, the amount was paid to PEDC.”
However, Ceneco failed and refused to answer such inquiry.
Republic Act 9136 otherwise known as the “Electric Power Industry Reform Act of 2001” states that before a contract could be implemented, the same should first be submitted for review and approval of the ERC, that once submitted, ERC will conduct hearings and could either grant a provisional authority before finally granting its final review.
Local government units within the franchise area of the electric cooperative, such as Bacolod City for Ceneco, should also be provided with a copy of the said contract and petition.
As per verification with the ERC and records of the City Council, nothing shown that Ceneco had submitted their 24-MW contract with PEDC for review and approval.
They had already publicly announced that they are already buying electricity from the PEDC despite of the absence of following the legal requirements set forth by law, which if found out by ERC, could make Ceneco liable for P200,000 penalty, and if such is true, then the penalty would be taken from Ceneco’s funds, which technically belongs to the consumers and imposing such fines on the clear negligent and willful act of some officials of Ceneco like General Manager Sulpicio Lagarde Jr. and then Ceneco president Edward Gasambelo, then they should be made accountable in civil, criminal and administrative sanctions.
Published in the Sun.Star Bacolod newspaper on July 06, 2011.

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