Power coop, bizmen oppose power hike

By Teresa Ellera-Dulla
Monday, December 5, 2011


CENTRAL Negros Electric Cooperative (Ceneco) and businessmen in the province are opposing another rate increase pegged at P0.044 per kilowatt hour (kwh) being asked by power generator Kepco SPS Corporation (KSPC).


Ceneco president lawyer Arnel Lapore said such increase will be too much.


Plan your Sinulog week ahead and find out what's in store for Sinulog 2012.


He appealed for the cooperation of all consumers to oppose the increase, which, he said, will even be more than what is asked by KSPC because it will still be subject to Expanded Value Added Tax or Evat, as it would be reflected on the generation charge of consumers’ bills.


A P0.25 increase was imposed on the generation charge just last month by Ceneco also because of the Electric Power Industry Reform Act (Epira) and the maintenance works done by KSPC.


Ceneco gets 40 megawatts of its power supply from KSPC.


Lapore said they will seek an audience with the governor and other local officials to get their support to oppose such increase.


He said he has instructed Ceneco general manager Sulpicio Lagarde Jr. to immediately send a letter to KSPC stating their opposition against such increase.


In his letter to Lapore, KSPC vice president Moon Jong Woo stated that the reason for the increase is the recent fuel predicament brought about by the new coal reference price ceiling imposed by the Indonesian government.


He added that in spite of a relevant provision in their existing Power Sales Contract for an automatic adjustment, they feel that such increase in the base reference coal price would still need the electric cooperative's consent and subsequent approval of the Energy Regulatory Commission (ERC).


The increase is still cheaper than the tariff of other available coal-fired plants by P0.40/kwh to P0.90/kwh, Woo added.


KSPC is asking Ceneco for the amendment of the Power Sales Contract.


Lapore said although he has not received the official letter from KSPC yet, he is hoping to get the support of other electric cooperatives in Negros to oppose such intention of KSPC to increase their rates anew.


Lapore admitted though that this will be an uphill battle against the system because the Epira allows such automatic adjustment imposed by Independent Power Producers like KSPC which was approved by the ERC.


This is now the fight of the whole power industry, he said.


"Ceneco cannot do this alone. We will oppose any more attempts to increase the generation charges," Lapore said.


Frank Carbon, president of the Metro Bacolod Chamber of Commerce and Industry, said several business groups in the province have already confirmed their opposition to such increase asked by KSPS.


He said the Social Action Center of the Diocese of Bacolod led by Father Mao Buenafe had also confirmed its opposition.


Among the business groups that are joining the opposition are the Bacolod Filipino Chinese Chamber of Commerce and Industry, Chamber of Real Estate and Builders Association, Amity Club, Northern Negros Chinese Chamber of and Southern Negros Chinese Chamber.


Carbon pointed out that the effective cost of such increase in the generation charge will be higher.


Published in the Sun.Star Bacolod newspaper on December 05, 2011.