BY ERWIN ‘AMBO’ DELILAN
UNKNOWN to the public yet, a “derby” among the directors of the highly controversial Central Negros Electric Cooperative (Ceneco) silently started last week.
Three of the nine members of the coop’s Board recently issued a manifestation clearly expressing their disapproval to a Board’s resolution which led Ceneco to succumb to a 12-month power deal extension with Cebu-based Korean Power Corporation – Salcon Power Corporation (Kepco-SPC) for a 20-megawatt (MW) supply that legally started on June 1, 2021.
The trio included directors Nicanor Gerald K. Jison of District IX- Silay City, Noel H. Alarcon of District VIII-Talisay City and Dwight A. Carbon of District VII – Municipalities of Salvador Benedicto and Murcia.
Their manifestation duly addressed to the Board of Directors (BoD) and thru the coop’s president Jojit Yap and acting general manager Danny Pondevilla had been received by both during the Board’s meeting on June 21, 2021.
I was privileged then to get hold of the copy of their three-page manifestation.
In the summative portion, the three respectfully confirmed Ceneco’s Third Party Bids and Awards Committee (TPBAC) Resolution No. 21-03, series of 2021: “Resolution Recommending the Power Supplier Bid Offer as the Lowest Calculated and Most Responsive Bid for Procurement of Ceneco’s 20-MW Baseload Power Requirement for 2021-2030.”
This refers to Kepco-SPC’s bid price of P3.2929/kWh.
But they expressed abstention and disagreement with the Board’s Resolution No. 129-24, series of 2021: “Resolution Approving the One (1) Year Extension of the Existing Power Sales Agreement (PSA) Contract with Kepco-SPC with a Reduced Capacity of 20-MW Baseload as Recommended by Project Supervisor (PS) and Acting General Manager (AGM) Atty. Danny L. Pondevilla.”
Again, this still refers to Kepco-SPC’s bid price, but at P5.4209/ kWh (this time).
Thus, a P2.13/kWh price difference was spotted by Power Watch Negros (PWN), among others, compelling Wennie Sancho, the group convenor and a consumer per se, to question such.
The trio then stressed, “This matter of supporting the approval of the lowest bid and disapproval for an extension is being issued for the benefit and advantage of the member-consumer-owners (MCOs) and the captive market of Ceneco.”
The trio’s contention was anchored on the premise that instead of the Board to act to the TPBAC’s resolution, it created its own version, which led to the current brouhaha.
When in fact, it is absolute that Section 5 of the Department of Energy’s (DOE) Competitive Selection Process (CSP) Circular clearly prohibits coop’s general or any member of the Board to endorse or choose (any) qualified bidder.
The same circular also mandates all distribution utilities (DUs) in the country to establish their respective TPBAC to be composed by four members representing the coops’ captive customers.
These include a lawyer of good standing; a finance officer with knowledge in electricity pricing; a technical expert on DU operations and someone knowledgeable about local and international bidding.
TPBAC shall solely act on the bidding procedures, but independent from the coop’s management and Board as to its “power to decide” in choosing the qualified bidder(s) for the coop’s power requirement.
Ceneco’s TPBAC, however, is being questioned now since it is headed by the coop’s corporate planning manager, Engr. Norman Pollentes, and the inclusion of Atty. Dindo Ramos, an incumbent city councilor of Bacolod, as member as well.
Thus, a Task Force Ceneco (TFC) was born last May aimed at scrutinizing Ceneco’s TPBAC composition.
TFC is a collaboration of the city’s business sector and Negros’ local government units.
On the other hand, in manifesting their disapproval, it seems that Directors Jison, Alarcon and Carbon were convinced by Sancho’s contention that Ceneco’s Board’s Resolution 129-24 simply “bastardized” TPBAC’s Resolution No. 21-03.
Sancho’s mathematical computation says that because of the Board’s resolution, declaring the P5.4209/kWh as (the final) power price still by Kepco-SPC will result to a price difference of P2.13/kWh.
And this price difference in 20-MW, reiterated by Sancho, will amount to P14.4 million/kWh.
Then, it’ll convert to a “whooping” P32 million/month or P168 million/year price differential.
And sad to say, lamented by Sancho, such will be lumbered by the Ceneco consumers.
With this, Sancho is filing an administrative charge of gross negligence against the coop for exposing consumers to a higher price, which is a violation of the Electric Power Industry Reform Act of 2001 (EPIRA) Law.
So to protect themselves from any legal imbroglio (as early as now), the trio had executed this manifestation that will convert themselves into nominal respondents later.
But Yap said, “I think normal man lang ang manifestation nila. It is in support or explanation to their abstention when we approved the one year extension with Kepco-SPC”.
Is Yap aware of the legal repercussions to be borne by the trio’s move?
I am hoping so, considering that the current mess might be a potent basis for a court case.
Moreover, she should note that the concern is quite serious as it involves millions of pesos thru a much-talked power deal.
She must also learn from Sancho’s explanations (in layman’s terms) vis-à-vis.
This as Sancho (really) knows how to explain the issue wherein ordinary people can immediately grasp what he means, and what he’s fighting for.
Pondevilla, on the other hand, is yet to issue comment(s).
Meanwhile, the recent move of Ceneco to cut ties with Sancho’s PWN was tantamount to an “unwell” decision.
Yes, Sancho’s cause is, perhaps, “irrelevant” to Ceneco, thus, sans deep introspection it immediately pronounced the cutting of ties with PWN as one consultative body for the coop.
But Pondevilla, who is new in the city as a seven-month-old Ceneco AGM, should also take note that “Sancho is Sancho” in Bacolod.
And media knows Sancho better than him.
Media “loves” to cover the no non-sense Sancho, a long-established labor crusader in Western Visayas.
Before he faces the media, Sancho sees to it that he knows the issue very well, thus, he delivers such (always) with “shock and awe” elements.
Thus, ignoring Sancho and his PWN, for sure, will lead Pondevilla, Yap and etcetera to a dejected situation.
Worse, such repulsive move by the coop’s management and the Board against PWN will, somehow, “inspire” Sancho and the rest of the “bystanders” on the issue to dig more about lots of Ceneco’s “polemic” dealings (both in the past and present).
And worst, it might “endanger” Pondevilla’s, among others’ retirement later.
Because the question now is: Hanggang saan kaya aabot ang P2.13/kWh price difference?
Abangan!/PN
