BY DOMINIQUE GABRIEL G. BAÑAGA
BACOLOD City – Local energy advocacy group, Power Watch Negros (PWN), urged the National Electrification Administration (NEA) to declare Central Negros Electric Cooperative (CENECO) an “ailing cooperative” amid allegations of mismanagement and corruption.
PWN lead convenor Wennie Sancho said CENECO is plagued with complaints and issues.
Among the issues he pointed out was the six members of CENECO’’s board of directors having been found guilty of simple neglect of duty on May 30, 2022, and each received a 30-day suspension.
Sancho also pointed out the “Notice of Default” issued by KEPCO SPC Power Corporation on Jan. 14, 2022, demanding CENECO to settle its full outstanding financial obligation in the amount of P280,298,294.20.
Sancho said the differential billing is relevant to the duly executed 20-megawatt power supply contract extension agreement between CENECO and KEPCO SPC in May 2021.
Another issue is the letter forwarded by KEPCO-SPC on Oct. 3, 2022, wherein the latter demanded the immediate return of performance security amounting to P54,538,560, including the accrued bank interest.
Sancho said the amount had been kept in CENECO’s coffers, resulting in huge business opportunities lost on the part of KEPCO-SPC.
He also said CENECO had blacklisted KEPCO-SPC to pave the way for its “emergency purchase” with PCPC, which resulted in a disparity of prices that are now being questioned by Bacolod City mayor Alfredo “Albee” Benitez.
The PWN lead convenor also cited House Resolution No. 475 by Cong. Greg Gasataya, recommending sanctions against CENECO for allegedly violating provisions of energy laws on Oct. 2021. CENECO failed to follow policy by violating the calculation of adjusted retail rates of the Energy Regulatory Commission (ERC) under ERC Resolution 16 of 2009.
There is also the June 2022 issue of the ERC ordering CENECO to repay an estimated P237.9-million worth of over-recoveries charged to its consumers for 14 years.
According to Sancho, in the online complaint desk for power-related concerns launched by Benitez in August last year, 69.3 percent of the complaints were about the high cost of electricity. There were other complaints as well against CENECO’s unscheduled power outages, an increase in the number of day-long brownouts, and sudden power disruptions.
Sancho said CENECO is in a “state of financial hemorrhage” and has a negative net worth due to financial inefficiencies, high system loss, low collection, and non-adherence to NEA and ERC policies.
“Prudence indeed will tell us that an electric cooperative long established should not be changed for light and transient causes,” Sancho said. “It is our duty to throw out CENECO and replace [it] with another that seems more likely to affect the welfare, happiness, and advancement of the CENECO consumers.”/PN
