By ERWIN ‘AMBO’ DELILAN
THE LOUDEST “talk of the town” in Bacolod City right now is the upcoming “marriage” of Central Negros Electric Cooperative (Ceneco) and MORE Electric and Power Corporation.
Well, the “final say” will be rendered by the National Electrification Administration (NEA). And if it’s a go, the “blessing” will be in the form of a joint venture agreement (JVA).
Question: Is it workable?
The answer: Certainly!
I am pretty sure there’s “goodness” in the offing.
Ceneco is definitely not ailing, but somehow “struggling” in the sense that its current system loss at 10.30 % is already “exigent”. Being rated under the “Triple A” category, it’s only allowed up to 8.25 percent cap of system loss. And the 2.05 % difference/excess can’t be included anymore among the pass-on charges allowed by law, thus, will be burdened by Ceneco per se.
Believe it or not, such an excess, per insider’s info, costs Ceneco more than P20-M / month. So, indirectly, it eats up Ceneco’s monthly revenues. As a result, Ceneco’s operational and maintenance expenses are certainly being affected.
LIKE CANCER CELL
A little rewind: Things happened so fast yet Ceneco “can’t be faulted”. In fact, it was “shocked” when the Energy Regulatory Commission (ERC) lowered down the system loss threshold in 2018.
This ERC’s decision was contained in its Resolution No. 20, Series of 2017. “Noblest” purpose: To bring down the power rates all over the country. And to help (electricity) consumers mitigate the impact of rising costs of commodities and services.
So, Ceneco’s previous 12% cap was cut to 8.25%. The continuing effect, however, is “unwell” for the coop.
Why?
System loss has technical and non-technical components. Technical is more on the line system, transformers, sub-stations, other facilities and equipment. Dilapidation is its “worst enemy”.
As to the non-technical, classic example: “pangawat kuryente” (power pilferage) like meter tampering, illegal tapping/connection, etc.
“Unmanageable “ system loss can be likened to cancer cells that silently attack human’s immune system.
QUITE REALISTIC
Will Ceneco allow “cancer cells” to thrive further?
Of course, not!
JVA could be the “best remedy” to keep its vibrancy and dynamism still. But what are the pros and cons once Ceneco and MORE start their “honeymoon” soonest?
Well, in every JVA, there are proposals and counter-proposals.
And in all likelihood, Ceneco management, for sure, won’t allow itself to be on the “disadvantaged edge” of the table.
At all cost, it’ll lobby for the retention of its workforce luwas lang sa mga salawayon. And per experience, MORE won’t say “NO” to such a deal.
Why?
Because in the power distribution business, it’s taxing to hire and train new ones. Most especially those in the technical, finance and administrativedepartments.
So, the possible set up: MORE for fresh capitalization and Ceneco for incumbent workforce.
Quite realistic, right?
‘BEYOND READY’
Question: Is MORE capable of marrying Ceneco?
The answer: Beyond 101% sure.
MORE is under the orb of billionaire Enrique K. Razon’s business conglomerate. So, it can’t be undervalued.
Yes, MORE is just four years old or a “toddler” in power distribution business in Iloilo City. But look at Iloilo City (now) if we talk about power or electricity.
Sans further ado, the “City of Love” is currently enjoying lower rates because of an almost nil system loss incurred by MORE.
In terms of promptness and efficiency in service, MORE is “beyond commendation”.
Capitalization?
MORE has more!
That’s why Bacolod City’s Mayor Albee Benitez won’t go “against the grain” re: JVA when three major considerations will be met. These are:
* if the rate is cheaper
* if there won’t be brownout 24/7
* if the (power) source is renewable
Fine! MORE is “beyond ready” to take these considerations-slash-challenges.
MORE TO ENJOY
Now, what’s the “gist” of the issue?
Privatization?
Nope! It’ll simply boil down to open-mindedness from both the Ceneco employees and the public per se.
Consider JVA as a modern giant ship and not a banca that’ll journey towards an “ocean of excellence” in power distribution within Ceneco’s kingdom.
For some, JVA’s interpreted as a potent vehicle towards privatization. But be informed, too, that JVA has always a term limit. The most is 25 years, but could be renewable.
Likewise, it has a revenue sharing scheme. Meaning, no total takeover. Ceneco will remain “as is where is”. But will surely “regain and gain more” out of it.
As to the employees, as long as they’re performing, no worry about displacement.
If it’s already sure for MORE, believe me, both Ceneco’s workers and consumers will have “more to enjoy”. /PN
